P R O S P E C T U S May 1, 1996
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Wright International Blue Chip Equities Fund
A mutual fund seeking long-term growth of capital and reasonable current income
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a series of
The Wright Managed Equity Trust
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Write To: The Wright Managed Investment Funds, BOS 725, Box 1559, Boston,
MA 02104
Or Call: The Fund Order Room -- (800) 225-6265
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This Prospectus is designed to provide you with information you should know
before investing. Please retain this document for future reference.
A Statement of Additional Information dated May 1, 1996 for the Fund has been
filed with the Securities and Exchange Commission and is incorporated herein by
reference. This Statement is available without charge from Wright Investors'
Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport, Connecticut
06604 (800-888-9471).
Shares of the Fund are not deposits or obligations of, or endorsed or guaranteed
by any bank or other insured depository institution, and are not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board
or any other government agency. Shares of the Fund involve investment risks,
including fluctuations in value and the possible loss of some or all of the
principal investment.
Table of Contents
PAGE
An Introduction to the Fund....................... 2
Shareholder and Fund Expenses..................... 4
Financial Highlights.............................. 5
The Fund's Investment Objective and Policies...... 6
Other Investment Policies......................... 7
The Investment Adviser............................ 8
The Administrator................................. 10
Distribution Expenses............................. 10
How the Fund Values its Shares.................... 11
How to Buy Shares................................. 12
How Shareholder Accounts are Maintained........... 13
Distributions by the Fund......................... 13
Taxes............................................. 14
How to Exchange Shares............................ 15
How to Redeem or Sell Shares...................... 16
Performance Information........................... 18
Other Information................................. 18
Tax-Sheltered Retirement Plans.................... 19
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<PAGE>
An Introduction to the Fund
The information summarized below is qualified in its entirety by the more
detailed information set forth below in this Prospectus.
The Trust................ The Wright Managed Equity Trust
(the "Trust") is an open-end management investment
company known as a mutual fund, is registered under the
Investment Company Act of 1940, as amended (the "1940
Act"), and consists of four series (the Funds)
(including three series that are being offered under a
separate prospectus). Each Fund is a diversified fund
and represents a separate and distinct series of the
Trust's shares of beneficial interest.
The Fund.................Wright International Blue Chip Equities Fund (the
"Fund").
Investment Objective.....The Fund seeks to enhance total
investment return (consisting of price appreciation
plus income) by investing in a broadly diversified
portfolio of equity securities of well-established,
non-U.S. companies meeting strict quality standards.
The Fund may buy common stocks traded on a securities
exchange in the country in which the company is based,
other foreign securities exchanges or it may purchase
American Depositary Receipts traded in the United
States. The net asset value of the Fund's shares is
calculated in U.S. dollars while the Fund's portfolio
securities may be quoted in foreign currencies.
Investors should understand that the fluctuations in
foreign exchange rates may impact the value of their
investment.
The Investment...........The Fund has engaged Wright Investors' Service, Inc.,
Adviser 1000 Lafayette Boulevard, Bridgeport, Connecticut
06604 ("Wright" or the "Investment Adviser") as
investment adviser to carry out the investment and
reinvestment of its assets.
The Administrator........The Fund also has retained Eaton Vance Management
("Eaton Vance" or the "Administrator"), 24 Federal
Street, Boston, MA 02110 as administrator to manage
its legal and business affairs.
The Distributor..........Wright Investors' Service Distributors, Inc. ("WISDI"
or the "Principal Underwriter") is the Distributor
of the Fund's shares and receives a distribution
fee equal on an annual basis to 2/10 of 1% of the
Fund's average daily net assets.
How to Purchase.........There is no sales charge on the purchase of shares of
Fund Shares the Fund. Shares of the Fund may be purchased at the
net asset value per share next determined after
receipt and acceptance of the purchase order. The
minimum initial investment is $1,000, which will be
waived for investments in 401(k) tax-sheltered
retirement plans. There is no minimum amount for
subsequent purchases. The $1,000 minimum initial
investment is waived for Bank Draft Investing accounts
which may be established with an investment of $50
or more with a minimum of $50 applicable to each
subsequent investment. Shares also may be purchased
through an exchange of securities. See "How to Buy
Shares."
<PAGE>
Distribution Options ....Distributions are paid in additional shares
at net asset value or cash as the shareholder elects.
Unless the shareholder has elected to receive dividends
and distributions in cash, dividends and distributions
will be reinvested in additional shares of the Fund at
its net asset value per share as of the investment
date.
Redemptions..............Shares may be redeemed directly from the Fund at the
net asset value per share next determined after receipt
of the redemption request in good order. A telephone
redemption privilege is available. See "How to Redeem
or Sell Shares."
Exchange Privilege ......Shares of the Fund may be exchanged for shares of
certain other funds managed by the Investment Adviser
at the net asset value next determined after
receipt of the exchange request. There may be limits on
the number and frequency of exchanges. See "How to
Exchange Shares."
Net Asset Value..........Net asset value per share of the Fund is calculated
on each day the New York Stock Exchange is open for
trading. Call (800) 888-9471 for the previous day's net
asset value.
Taxation.................The Fund has elected to be treated, has qualified and
intends to continue to qualify each year as a regulated
investment company under Subchapter M of the Internal
Revenue Code and, consequently, should not be liable
for federal income tax on net investment income and net
realized capital gains that are distributed to
shareholders in accordance with applicable timing
requirements.
Shareholder..............Each shareholder will receive annual and semi-annual
Communications reports containing financial statements, and a
statement confirming each share transaction.
Financial statements included in annual reports are
audited by the Trust's independent certified
public accountants. Where possible, shareholder
confirmations and account statements will consolidate
all Wright investment fund holdings of the shareholder.
<PAGE>
Shareholder and Fund Expenses
The following table of fees and expenses is provided to assist investors in
understanding the various costs and expenses which may be borne directly or
indirectly by an investment in the Fund. The percentages shown below
representing total operating expenses are based on actual amounts incurred for
the fiscal year ended December 31, 1995.
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Shareholder Transaction Expenses .................. none
Annualized Fund Operating Expenses
(as a percentage of average net assets)
Investment Adviser Fee........................ 0.77%
Rule 12b-1 Distribution Expense............... 0.20%
Other Expenses (including
administration fee of 0.12%)................ 0.32%
Total Operating Expenses ..................... 1.29%
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Example of Fund Expenses
The following is an illustration of the total transaction and operating expenses
that an investor in the Fund would bear over different periods of time, assuming
a investment of $1,000, a 5% annual return on the investment and redemption at
the end of each period:
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1 Year.............................. $ 13
3 Years............................ 41
5 Years........................... 71
10 Years............................. 156
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The Example should not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown. Federal
regulations require the Example to assume a 5% annual return, but actual return
will vary.
The Fund's payment of a distribution fee may result in a long-term
shareholder indirectly paying more than the economic equivalent of the maximum
initial sales charge permitted under the Rules of Fair Practice of the National
Association of Securities Dealers, Inc.
<PAGE>
Financial Highlights
The following information should be read in conjunction with the audited
financial statements included in the Statement of Additional Information, all of
which has been so included in reliance upon the report of Deloitte & Touche LLP,
independent certified public accounts, as experts in accounting and auditing,
which report is contained in the Fund's Statement of Additional Information.
Further information regarding the performance of the Fund is contained in its
annual report to shareholders which may be obtained without charge by contacting
the Fund's Principal Underwriter, Wright Investors' Service Distributors, Inc.
at (800) 888-9471.
<TABLE>
Year Ended December 31,
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FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 1990 1989(2)
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<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 13.090 $13.410 $10.520 $ 11.040 $ 9.520 $10.400 $10.000
------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115 $ 0.164 $ 0.092
Net realized and unrealized gain (loss) on
investments..................... 1.638 (0.347) 2.853 (0.524) 1.515 (0.874) 0.353
------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 1.780 $(0.220) $ 2.960 $ (0.430) $ 1.630 $(0.710) $ 0.445
------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $ (0.100)$(0.100) $(0.070)$ (0.090) $(0.110) $(0.170) $(0.045)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $ 14.770 $13.090 $13.410 $ 10.520 $ 11.040 $ 9.520 $10.400
======= ======= ======= ======= ======= ======= =======
Total Return(3).................... 13.61% (1.64%) 28.22% (3.94%) 17.21% (6.92%) 4.46%(4)
Ratios/Supplemental Data
Net assets, end of year (000 omitted) $237,176 $200,232 $100,071$ 74,409 $51,802 $18,842 $14,363
Ratio of expenses to average net assets 1.29% 1.31% 1.46% 1.51% 1.67% 1.65% 0.59%(4)
Ratio of net investment income to
average net assets.............. 0.99% 1.00% 0.67% 0.81% 1.12% 1.66% 3.28%(4)
Portfolio Turnover Rate 12% 12% 30% 15% 23% 13% 0%
<FN>
(1)During each of the two years in the period ended December 31, 1990, the
operating expenses of the Fund were reduced either by a reduction of the
investment adviser fee, administrator fee, or distribution fee or a reduction
of a combination of these fees. Had such actions not been undertaken, the net
investment income per share and the annualized ratios would have been as
follows:
Year Ended December 31,
1990 1989(2)
Net investment income per share.... $ 0.092 $ 0.065
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Ratios (Asa percentage of average net assets):
Expenses......................... 2.38% 1.55%(4)
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Net investment income............ 0.93% 2.33%(4)
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(2) For the period from September 14, 1989 (commencement of operations), to
December 31, 1989.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Annualized.
</FN>
</TABLE>
<PAGE>
The Fund's
Investment Objective And Policies
The Fund's objective is to provide long-term growth of capital and at the same
time earn reasonable current income. Securities selected for the Fund are drawn
from an investment list prepared by Wright and known as The International
Approved Wright Investment List (the "International AWIL").
The International Approved Wright Investment List (International AWIL). Wright
systematically reviews the about 8,000 non-U.S. companies from 36 countries
contained in Wright's Worldscope(R) database in order to identify those which,
on the basis of at least five years of audited records, pass the minimum
standards of prudence (e.g. the value of the company's assets and shareholders'
equity exceeds certain minimum standards and its operations have been profitable
during the last three years) and thus are suitable for consideration by
fiduciary investors. Companies which meet these requirements (about 3,000
companies) are considered by Wright to be "investment grade". They may be large
or small, may have their securities traded on exchanges or over the counter, and
may include companies not currently paying dividends on their shares.
These companies are then subjected to extensive analysis and evaluation in
order to identify those which meet Wright's 32 fundamental standards of Premium
Investment Quality. Only those companies which meet or exceed all of these
standards are eligible for selection by the Wright Investment Committee for
inclusion in the International AWIL. See the Statement of Additional Information
for a more detailed description of Wright Quality Ratings and the International
AWIL.
All companies on the International AWIL are, in the opinion of Wright,
soundly financed "True Blue Chips" with established records of earnings
profitability and equity growth. All have established investment acceptance and
active, liquid markets for their publicly owned shares.
The investment objective and, unless otherwise indicated, policies of the
Fund may be changed by the Trustees of the Trust without a vote of the Fund's
shareholders. Any such change of the investment objective of the Fund will be
preceded by thirty days' advance notice to each shareholder of the Fund. If any
changes were made, the Fund might have an investment objective different from
the objective which an investor considered appropriate at the time the investor
became a shareholder in the Fund. There is no assurance that the Fund will
achieve its investment objective. The market price of securities held by the
Fund and the net asset value of the Fund's shares will fluctuate in response to
international stock market developments and currency exchange rate fluctuations.
The Fund seeks to enhance the total investment return (consisting of price
appreciation plus income) by providing management of a broadly diversified
portfolio of equity securities of well-established, non-U.S. companies meeting
strict quality standards. The Fund will, through continuous professional
investment supervision by Wright, pursue these objectives by investing in a
diversified portfolio of equity securities of high-quality, well-established and
profitable non-U.S. companies having their principal business activities in at
least three different countries outside the United States.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in International Blue Chip equity securities, including common
stocks, preferred stocks and securities convertible into stock. This is a
fundamental policy that can only be changed with shareholder approval.
International Blue Chip equity securities are those which are included in the
International AWIL, as described above. However, for temporary defensive
purposes the Fund may hold cash or invest more than 20% of its net assets in the
short-term debt securities described under "Other Investment Policies -
Defensive Investments."
The Fund may purchase equity securities traded on a securities market of
the country in which the company is located or other foreign securities
exchanges, or it may purchase American Depositary Receipts ("ADRs") traded in
the United States. Purchases of shares of the Fund are suitable for investors
wishing to diversify their portfolios by investing in non-U.S. companies or for
investors who simply wish to participate in non-U.S. investments. Although the
value of the Fund's net assets per share will be calculated in U.S. dollars,
fluctuations in foreign currency exchange rates may affect the value of an
investment in the Fund.
<PAGE>
The disciplines which determine sale include disposing of equity securities
of any company which no longer meets the quality standards of the International
AWIL. The disciplines which determine purchase provide that new funds, income
from the Fund's portfolio securities and proceeds of sales of the Fund's
portfolio securities will be used to increase those positions which at current
market value are the furthest below their normal target values.
Foreign Investment Risk. Investing in securities of foreign companies and
governments involves certain considerations in addition to those arising when
investing in domestic securities. These considerations include the possibility
of currency exchange rate fluctuations and revaluation of currencies, the
existence of less publicly available information about foreign issuers,
different accounting, auditing and financial reporting standards, less stringent
securities regulation, non-negotiable brokerage commissions, different tax
provisions, political or social instability, war or expropriation. Moreover,
foreign stock and bond markets generally are not as developed and efficient as
those in the United States and, therefore, the volume and liquidity in those
markets may be less, and the volatility of prices may be greater, than in U.S.
markets. Settlement of transactions on foreign markets may be delayed beyond
what is customary in U.S. markets. These considerations generally are of greater
concern in developing countries.
The value in U.S. dollars of investments quoted or denominated in foreign
currencies will be affected by changes in currency exchange rates. As one way of
managing currency exchange rate risk, the Fund may enter into forward foreign
currency exchange contracts, which are agreements to purchase or sell a
designated amount of foreign currencies at a specified price and date. The Fund
will usually enter into these contracts to fix the U.S. dollar value of a
security it has agreed to buy or sell. The Fund may also use these contracts to
hedge the U.S. dollar value of a security it already owns, particularly if it
expects a decline in the value of the currency in which the foreign security is
quoted or denominated. Although the Fund will attempt to benefit from using
forward contracts, the success of its hedging strategy will depend on the
Investment Adviser's ability to predict accurately the future exchange rate
between foreign currencies and the U.S. dollar. The ability to predict the
direction of currency exchange rates involves skills different from those used
in selecting securities. The Fund may hold foreign currency or short-term U.S.
or foreign government securities pending investment in foreign securities.
Other Investment Policies
The Fund has adopted certain fundamental investment restrictions which are
enumerated in detail in the Statement of Additional Information and which may be
changed only by the vote of a majority of the Fund's outstanding voting
securities. Among the restrictions, the Fund may not borrow money in excess of
1/3 of the current market value of the Fund's net assets (excluding the amount
borrowed), invest more than 5% of the Fund's total assets taken at current
market value in the securities of any one issuer, purchase more than 10% of the
voting securities of any one issuer or invest 25% or more of the Fund's total
assets in the securities of issuers in the same industry. There is, however, no
limitation in respect to investments in obligations issued or guaranteed by the
U.S. Government or its agencies or instrumentalities. The Fund may not invest
more than 15% of its net assets in illiquid investments. The Fund has no current
intention of borrowing for leverage or speculative purposes.
The Fund is not intended to be a complete investment program, and the
prospective investor should take into account his or her objectives and other
investments when considering the purchase of Fund shares. The Fund cannot
eliminate risk or assure achievement of its objective.
Repurchase Agreements. The Fund may enter into repurchase agreements to the
extent permitted by its investment policies in order to earn income on
temporarily uninvested cash. A repurchase agreement is an agreement under which
the seller of securities agrees to repurchase and the Fund agrees to resell the
securities at a specified time and price. The Fund may enter into repurchase
agreements only with large, well-capitalized banks or government securities
dealers that meet Wright credit standards. In addition, such repurchase
agreements will provide that the value of the collateral underlying the
repurchase agreement will always be at least equal to the repurchase price,
including any accrued interest earned under the repurchase agreement. In the
event of
<PAGE>
a default or bankruptcy by a seller under a repurchase agreement, the Fund
will seek to liquidate such collateral. However, the exercise of the right to
liquidate such collateral could involve certain costs, delays and restrictions
and is not ultimately assured. To the extent that proceeds from any sale upon a
default of the obligation to repurchase are less than the repurchase price, the
Fund could suffer a loss.
Lending Portfolio Securities. The Fund may seek to increase its total return by
lending portfolio securities to broker-dealers or other institutional borrowers.
Under present regulatory policies of the Securities and Exchange Commission,
such loans are required to be continuously secured by collateral in cash,
cash-equivalents and U.S. Government securities held by the Fund's custodian and
maintained on a current basis at an amount at least equal to the market value of
the securities loaned, which will be marked to market daily. During the
existence of a loan, the Fund will continue to receive the equivalent of the
interest or dividends paid by the issuer on the securities loaned and will also
receive a fee, or all or a portion of the interest, if any, on investment of the
collateral. However, the Fund may at the same time pay a transaction fee to such
borrowers and administrative expenses, such as finders fees to third parties. As
with other extensions of credit there are risks of delay in recovery or even
loss of rights in the securities loaned if the borrower of the securities fails
financially. However, the loans will be made only to organizations deemed by the
Investment Adviser to be of good standing and when, in the judgment of the
Investment Adviser, the consideration which can be earned from securities loans
of this type justifies the attendant risk. The financial condition of the
borrower will be monitored by the Investment Adviser on an ongoing basis and
collateral values will be continuously maintained at no less than 100% by
"marking to market" daily. If the Investment Adviser decides to make securities
loans on behalf of the Fund, it is intended that the value of the securities
loaned would not exceed 30% of the Fund's total assets.
Defensive Investments. During periods of unusual market conditions, when Wright
believes that investing for temporary defensive purposes is appropriate, all or
any portion of the Fund's assets may be held in cash or invested in short-term
obligations, including but not limited to short-term obligations issued or
guaranteed as to interest and principal by the U.S. Government or any agency or
instrumentality thereof (including repurchase agreements collateralized by such
securities); commercial paper which at the date of investment is rated A-1 by
Standard & Poor's Ratings Group ("S&P") or P-1 by Moody's Investors Service,
Inc. ("Moody's"), or, if not rated by such rating organization, is deemed by the
Trustees to be of comparable quality; short-term corporate obligations and other
debt instruments which at the date of investment are rated AA or better by S&P
or Aa or better by Moody's or, if unrated by such rating organization, are
deemed by the Trustees to be of comparable quality; and certificates of deposit,
bankers' acceptances and time deposits of domestic and foreign banks which are
determined to be of high quality by the Trustees. The Fund may invest in
instruments and obligations of banks that have other relationships with the
Fund, Wright, or Eaton Vance. No preference will be shown towards investing in
banks which have such relationships.
The Investment Adviser
The Fund has engaged The Winthrop Corporation ("Winthrop"), to act as its
investment adviser pursuant to its Investment Advisory Contract. Pursuant to a
service agreement effective February 1, 1996 between Winthrop and its
wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright"), Wright,
acting under the general supervision of the Trust's Trustees, furnishes the Fund
with investment advice and management services. Winthrop supervises Wright's
performance of this function and retains its contractual obligations under its
Investment Advisory Contract with the Fund. The address of both Winthrop and
Wright is 1000 Lafayette Boulevard, Bridgeport, Connecticut. The Trustees of the
Trust are responsible for the general oversight of the conduct of the Fund's
business.
Wright is a leading independent international investment management and
advisory firm which, together with its parent, Winthrop, has more than 30 years'
experience. Its staff of over 150 people includes a highly respected team of 65
economists, investment experts and research analysts. Wright manages assets for
bank trust departments, corporations, unions, municipalities, eleemosynary
institutions, professional associations, institutional investors, fiduciary
or-
<PAGE>
ganizations, family trusts and individuals as well as mutual funds. Wright
operates one of the world's largest and most complete databases of financial
information on 13,000 domestic and international corporations. At the end of
1995, Wright managed approximately $4 billion of assets.
Under the Fund's Investment Advisory Contract, the Fund is required to pay
Winthrop a monthly advisory fee at the annual rates (as a percentage of average
daily net assets) set forth in the table below. Effective February 1, 1996,
Winthrop will cause the Fund to pay to Wright the entire amount of the advisory
fee payable by the Fund under its Investment Advisory Contract with Winthrop.
ANNUAL % ADVISORY FEE RATES
Under $100 Mil.to $250 Mil.to $500 Mil.to Over
$100 Mil. $250 Mil. $500 Mil. $1 Billion $1 Billion
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0.75% 0.79% 0.77% 0.73% 0.68%
As at December 31, 1995, the aggregate net assets of the Fund were
$237,175,946. For the fiscal year ended December 31, 1995, the Fund paid
advisory fees equivalent to 0.77% of the Fund's average daily net assets.
The advisory fee rates paid by the Fund are higher than those paid by most
other mutual funds. This higher fee is attributable to the specialized expertise
required to implement the Fund's international investments and is comparable to
the fees paid by many other funds with similar investment objectives and
policies.
Shareholders of the Fund who are also advisory clients of Wright may have
agreed to pay Wright a fee for such advisory services. Wright does not intend to
exclude from the calculation of the investment advisory fees payable to Wright
by such advisory clients the portion of the advisory fee payable by the Fund.
Accordingly, a client may pay an advisory fee to Wright in accordance with
Wright's customary investment advisory fee schedule charged to investment
advisory clients and at the same time, as a shareholder in a Fund, bear its
share of the advisory fee paid by the Fund to Wright as described above.
Pursuant to the Investment Advisory Contract, Wright also furnishes for the
use of the Fund office space and all necessary office facilities, equipment and
personnel for servicing the investments of the Fund. The Fund is responsible for
the payment of all expenses relating to its operations other than those
expressly stated to be payable by Wright under its Investment Advisory Contract.
Wright places the portfolio security transactions for the Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments. Wright seeks to execute the Fund's portfolio security transactions
on the most favorable terms and in the most effective manner possible. Subject
to the foregoing, Wright may consider sales of shares of the Fund or of other
investment companies sponsored by Wright as a factor in the selection of
broker-dealer firms to execute such transactions.
An Investment Committee of senior officers, all of whom are experienced
analysts, exercises disciplined direction and control over all investment
selections, policies and procedures for the Fund. The Committee, following
highly disciplined buy-and-sell rules, makes all decisions for the selection,
purchase and sale of all securities. The members of the Committe are as follows:
Peter M. Donovan, CFA, President and Chief Executive Officer of Wright. Mr.
Donovan received a BA Economics, Goddard College and joined Wright from Jones,
Kreeger & Co., Washington, DC in 1966. Mr. Donovan is the president of The
Wright Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed
Blue Chip Series Trust, and The Wright EquiFund Equity Trust. He is also
director of EquiFund - Wright National Equity Fund, a Luxembourg SICAV. He is a
member of the New York Society of Security Analysts and the Hartford Society of
Financial Analysts.
Judith R. Corchard, Chairman of the Investment Committee, Executive Vice
President-Investment Management of Wright. Ms. Corchard attended the
University of Connecticut and joined Wright in 1960. She is a member of the New
York Society of Security Analysts and the Hartford Society of Financial
Analysts.
<PAGE>
Jatin J. Mehta, CFA, Executive Counselor and Director of Education of
Wright. Mr. Mehta received a BS Civil Engineering, University of Bombay, India
and an MBA from the University of Bridgeport. Before joining Wright in 1969, Mr.
Mehta was an executive of the Industrial Credit Investment Corporation of India,
a World Bank agency in India for financial assistance to private industry. He is
a Trustee of The Wright Managed Blue Chip Series Trust. He is a member of the
New York Society of Security Analysts and the Hartford Society of Financial
Analysts.
Harivadan K. Kapadia, CFA, Senior Vice President - Investment Analysis
and Information of Wright. Mr. Kapadia received a BA (hon.) Economics and
Statistics and MA Economics, University of Baroda, India and an MBA from the
University of Bridgeport. Before joining Wright in 1969, Mr. Kapadia was
Assistant Lecturer at the College of Engineering and Technology in Surat, India
and Lecturer, B.J. at the College of Commerce & Economics, VVNagar, India. He
has published the textbooks: "Elements of Statistics," "Statistics,"
"Descriptive Economics," and "Elements of Economics." He was appointed Adjunct
Professor at the Graduate School of Business, Fairfield University in 1981. He
is a member of the New York Society of Security Analysts and the Hartford
Society of Financial Analysts.
Michael F. Flament, CFA, Senior Vice President - Investment and Economic
Analysis of Wright. Mr. Flament received a BS Mathematics, Fairfield University;
MA Mathematics, University of Massachusetts and an MBA Finance, University of
Bridgeport. He is a member of the New York Society of Security Analysts and the
Hartford Society of Financial Analysts.
James P. Fields, CFA, Vice President and Investment Officer of Wright. Mr.
Fields received a B.S. Accounting, Fairfield University and an MBA Finance from
Pace University. He joined Wright in 1982 and is also a member of the New York
Society of Security Analysts.
Wright is also the investment adviser to the other Funds in The Wright
Managed Equity Trust, The Wright Managed Income Trust, The Wright Managed Blue
Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright Funds").
The Administrator
The Trust engages Eaton Vance as its administrator under an Administration
Agreement. Under the Administration Agreement, Eaton Vance is responsible for
managing the legal and business affairs of the Fund, subject to the supervision
of the Trust's Trustees. Eaton Vance's services include recordkeeping,
preparation and filing of documents required to comply with federal and state
securities laws, supervising the activities of the Fund's custodian and transfer
agent, providing assistance in connection with the Trustees' and shareholders'
meetings and other administrative services necessary to conduct the Fund's
business. Eaton Vance will not provide any investment management or advisory
services to the Fund. For its services under the Administration Agreement, Eaton
Vance receives a monthly administration fee at the annual rates (as a percentage
of average daily net assets) set forth in the following table.
ANNUAL % ADMINISTRATION FEE RATES
Fee Rate Paid
Under $100 Million $250 Million Over for the Fiscal
$100 to to $500 Year Ended
Million $250 Million $500 Million Million 12/31/95
- ------------------------------------------------------------------------
0.20% 0.06% 0.03% 0.02% 0.12%
Eaton Vance, its affiliates and its predecessor companies have been
primarily engaged in managing assets of individuals and institutional clients
since 1924 and managing, administering and marketing mutual funds since 1931.
Total assets under management are over $16 billion. Eaton Vance is a
wholly-owned subsidiary of Eaton Vance Corp. ("EVC"), a publicly-held holding
company.
Distribution Expenses
In addition to the fees and expenses payable by the Fund in accordance with the
Investment Advisory Contract and Administration Agreement, the Fund pays for
certain expenses pursuant to a Distribution Plan (the "Plan") adopted by the
Trust and designed to meet the requirements of Rule 12b-1 under the 1940 Act.
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The Trust's Plan provides that monies may be spent by the Fund on any
activities primarily intended to result in the sale of the Fund's shares,
including, but not limited to, compensation paid to and expenses incurred by
officers, Trustees, employees or sales representatives of the Trust, including
telephone expenses, the printing of prospectuses and reports for other than
existing shareholders, preparation and distribution of sales literature, and
advertising of any type. The expenses covered by the Trust's Plan may include
payments to any separate distributors under agreement with the Trust for
activities primarily intended to result in the sale of the Trust's shares.
The Trust has entered into a distribution contract with Wright Investors'
Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a wholly
owned subsidiary of Winthrop. Under the Plan, as amended, it is intended that
the Fund will pay 2/10 of 1% of its average daily net assets to WISDI. Subject
to the 2/10 of 1% per annum limitation imposed by the Plan, the Fund may pay
separately for expenses of any other activities primarily intended to result in
the sale of its shares.
For the fiscal year ended December 31, 1995, the Fund made distribution
expense payments (as an annualized percentage of average daily net assets) of
0.20%.
The Principal Underwriter may use the distribution fee for its expenses of
distributing the Fund's shares, including allocable overhead expenses. Any
distribution expenses exceeding the amounts paid by the Fund to the Principal
Underwriter were not incurred by the Principal Underwriter but were paid by
Wright from its own assets. Distribution expenses not specifically attributable
to the Fund are allocated among the Fund and certain other investment companies
for which Wright acts as Principal Underwriter, based on the amount of sales of
the Fund's shares resulting from the Principal Underwriter's distribution
efforts and expenditures. If the distribution fee exceeds the Principal
Underwriter's expenses, the Principal Underwriter may realize a profit from
these arrangements. The Trust's Plan is a compensation plan. If the Plan is
terminated, the Fund would stop paying the distribution fee and the Trustees
would consider other methods of financing the distribution of the Fund's shares.
How the Fund Values its Shares
The Trust values the shares of the Fund once on each day the New York Stock
Exchange ("NYSE") is open as of the close of regular trading on the NYSE
(normally 4:00 p.m. New York time). The net asset value is determined in the
manner authorized by the Trustees of the Trust by Investors Bank & Trust Company
("IBT"), the Fund's custodian (as agent for the Fund) with the assistance of
Wright for securities that involve valuation problems. Such determination is
accomplished by dividing the number of outstanding shares of the Fund into its
net worth (the excess of its assets over its liabilities).
Portfolio securities traded on more than one United States national
securities exchange or foreign securities exchange are valued by the Fund's
custodian at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities, unless those prices are deemed by Wright to be not
representative of market values. Securities which cannot be valued at such
prices, will be valued by Wright at fair value in accordance with procedures
adopted by the Trustees. Foreign currencies, options on foreign currencies and
forward foreign currency contracts will be valued at their last sales price as
determined by published quotations or as supplied by banks that deal in such
instruments. The value of all assets and liabilities expressed in foreign
currencies will be converted into U.S. dollar value at the mean between the
buying and selling rates of such currencies against U.S. dollars last quoted by
any major bank. If such quotations are not available, the rate of exchange will
be determined in good faith by or under procedures established by the Trustees.
Securities traded over-the-counter, unlisted securities and listed securities
for which closing sale prices are not available are valued at the mean between
latest bid and asked prices or, if such bid and asked prices are not available,
at prices supplied by a pricing agent selected by Wright, unless such prices are
deemed by Wright not to be representative of market values at the close of
business of the NYSE. Securities for which market quotations are unavailable,
restricted securities, securities for which prices are deemed by Wright not to
be representative of market values, and other assets will be appraised at their
fair value as determined in good faith according to guidelines established by
<PAGE>
the Trustees of the Trust. Short-term obligations with remaining maturities of
sixty days or less are valued at amortized cost, which approximates market
value. Options traded on exchanges and over-the-counter will be valued at the
last current sales price on the market where such option is principally traded.
Over-the-counter and listed options for which a last sales price is not
available will be valued on the basis of quotations supplied by dealers who
regularly trade such options or if such quotations are not available or deemed
by Wright not to be representative of market values, at fair value.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of business
on each business day in New York (i.e., a day on which the NYSE is open for
trading). In addition, European or Far Eastern securities trading generally or
in a particular country or countries may not take place on all business days in
New York. Furthermore, trading takes place in Japanese markets on certain
Saturdays and in various foreign markets on days which are not business days in
New York and on which the Fund's net asset value is not calculated. Such
calculation does not take place contemporaneously with the determination of the
prices of the majority of the portfolio securities used in such calculation.
Events affecting the values of portfolio securities that occur between the time
their prices are determined and the close of the NYSE will not be reflected in
the Fund's calculation of net asset value unless Wright deems that the
particular event would materially affect net asset value, in which case an
adjustment will be made.
How to Buy Shares
Shares of the Fund are sold without a sales charge at the net asset value next
determined after the receipt of a purchase order as described below. The minimum
initial investment is $1,000, although this will be waived for investments in
401(k) tax-sheltered retirement plans or for Bank Draft Investing accounts,
which may be established with an investment of $50 or more. There is no minimum
amount required for subsequent purchases, except that subsequent investments for
Bank Draft Investing Accounts must be at least $50. The Fund reserves the right
to reject any order for the purchase of its shares or to limit or suspend,
without prior notice, the offering of its shares.
Shares of the Fund may be purchased or redeemed through an investment
dealer, bank or other institution ("Authorized Dealer"). Charges may be imposed
by the institution for its services. Any such charges could constitute a
material portion of a smaller account. Shares may be purchased or redeemed
directly from or with the Fund without imposition of any charges other than
those described in this Prospectus.
By Wire: Investors may purchase shares by transmitting immediately
available funds (Federal Funds) by wire to:
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA
ABA: 011001234
Account 081345
Further Credit: (Name of Fund)
(Include your Fund account number)
Initial purchase -- Upon making an initial investment by wire, an investor
must first telephone the Fund's Order Department (800) 225-6265, ext. 3, to
advise of the action and to be assigned an account number. If this telephone
call is not made, it may not be possible to process the order promptly. In
addition, an Account Instructions form, which is available through WISDI, should
be promptly forwarded to First Data Investor Services Group (the "Transfer
Agent") at the following address:
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
Subsequent Purchases -- Additional investments may be made at any time
through the wire procedure described above. The Fund's Order Department must be
immediately advised by telephone at (800) 225-6265, ext. 3, of each transmission
of funds by wire.
<PAGE>
By Mail: Initial Purchases -- The Account Instructions form available
through WISDI should be completed, signed and mailed with a check, Federal
Reserve Draft, or other negotiable bank draft, drawn on a U.S. bank and payable
in U.S. dollars, to the order of the Wright International Blue Chip Equities
Fund, and mailed to the Transfer Agent at the above address.
Subsequent Purchases -- Additional purchases may be made at any time by
check, Federal Reserve draft, or other negotiable bank draft, drawn on a U.S.
bank and payable in U.S. dollars, to the order of the Fund at the above address.
The sub-account, if any, to which the subsequent purchase is to be credited
should be identified together with the sub-account number and, unless otherwise
agreed, the name of the sub-account.
Bank Draft Investing -- for regular share accumulation: Cash investments of
$50 or more may be made through the shareholder's checking account via bank
draft each month or quarter. The $1,000 minimum initial investment and small
account redemption policy are waived for Bank Draft Investing accounts.
Purchase through Exchange of Securities: Investors wishing to purchase
shares of the Fund through an exchange of portfolio securities should contact
WISDI to determine the acceptability of the securities and make the proper
arrangements. Shares of the Fund may be purchased, in whole or in part, by
delivering to the Fund's custodian securities that meet the investment objective
and policies of the Fund, have readily ascertainable market prices and
quotations and are otherwise acceptable to the Investment Adviser and the Fund.
The Trust will only accept securities in exchange for shares of the Fund for
investment purposes and not as agent for the shareholders with a view to a
resale of such securities. The Investment Adviser, WISDI and the Fund reserve
the right to reject all or any part of the securities offered in exchange for
shares of the Fund. An investor who wishes to make an exchange should furnish to
WISDI a list with a full and exact description of all of the securities which he
proposes to deliver. WISDI or the Investment Adviser will specify those
securities which the Fund is prepared to accept and will provide the investor
with the necessary forms to be completed and signed by the investor. The
investor should then send the securities, in proper form for transfer, with the
necessary forms to the Fund's custodian and certify that there are no legal or
contractual restrictions on the free transfer and sale of the securities.
Exchanged securities will be valued at their fair market value as of the date
that the securities in proper form for transfer and the accompanying purchase
order are both received by the Trust, using the procedures for valuing portfolio
securities as described under "How the Fund Values its Shares" on page 11.
However, if the NYSE or appropriate foreign stock exchange is not open for
unrestricted trading on such date, such valuation shall be on the next day on
which the NYSE is so open. The net asset value used for purposes of pricing
shares sold under the exchange program will be the net asset value next
determined following the receipt of both the securities offered in exchange and
the accompanying purchase order. Securities to be exchanged must have a minimum
aggregate value of $5,000. An exchange of securities is a taxable transaction
which may result in realization of a gain or loss for federal and state income
tax purposes.
How Shareholder Accounts are Maintained
Upon the initial purchase of Fund shares, an account will be opened for the
account or sub-account of the investor. Subsequent investments may be made at
any time by mail to the Transfer Agent or by wire, as noted above. Distributions
paid in additional shares are credited to Fund accounts quarterly. Confirmation
statements indicating total shares of the Fund owned in the account or each
sub-account will be mailed to investors quarterly, and at the time of each
purchase or redemption. The issuance of shares will be recorded on the books of
the Fund. The Trust does not issue share certificates.
Distributions by the Fund
The Trust intends to pay dividends from the net investment income of the Fund as
shown on the Fund's books at least annually. Any net capital gains realized from
the sale of securities or other transactions in the Fund's portfolio (reduced by
any available capital loss carryforwards from prior years) will be paid at least
annually, shortly before or after the close
<PAGE>
of the Fund's fiscal year. Shareholders may reinvest dividends and
accumulate capital gains distributions, if any, in additional shares of the Fund
at the net asset value as of the ex-dividend date. Unless shareholders otherwise
instruct, all distributions and dividends will be automatically invested in
additional shares of the Fund. Alternatively, shareholders may reinvest capital
gains distributions and direct that dividends be paid in cash, or that both
dividends and capital gains distributions be paid in cash.
Taxes
The Fund is treated as a separate entity for federal income tax purposes under
the Internal Revenue Code of 1986, as amended (the "Code"). The Fund has
qualified and elected to be treated as a regulated investment company for
federal income tax purposes and intends to continue to qualify as such. In order
to so qualify, the Fund must meet certain requirements with respect to sources
of income, diversification of assets, and distributions to shareholders. The
Fund does not pay federal income or excise taxes to the extent that it
distributes to its shareholders all of its net investment income and net
realized capital gains in accordance with the timing requirements of the Code.
In addition, the Fund will not be subject to Massachusetts income, corporate
excise or franchise taxation as long as it qualifies as a regulated investment
company under the Code.
In order to avoid federal excise tax, the Code requires that the Fund
distribute (or be deemed to have distributed) by December 31 of each calendar
year at least 98% of its ordinary income for such year, at least 98% of the
excess of its realized capital gains over its realized capital losses (computed
on the basis of the one-year period ending on October 31 of such year, after
reduction by any available capital loss carryforwards) and 100% of any income
and capital gains from the prior year (as previously computed) that was not paid
out during such year and on which the Fund paid no federal income tax.
Distributions of net investment income, the excess of net short-term
capital gain over net long-term capital loss, and certain foreign currency gains
are taxable to shareholders as ordinary income, whether received in cash or
reinvested in additional shares. Distributions of the excess of the Fund's net
long-term capital gain over its net short-term capital loss (including any
capital losses carried forward from prior years) are taxable as long-term
capital gains whether received in cash or reinvested in additional shares,
regardless of how long the shareholder has held the Fund shares.
Distributions on Fund shares shortly after their purchase, although they
may be attributable to taxable income and/or capital gains that had been
realized but not distributed at the time of purchase and, therefore, may be in
effect a return of a portion of the purchase price, are generally subject to
federal income tax. It is not expected that any portion of distributions by the
Fund will qualify for the corporate dividends-received deduction.
Shareholders may realize a taxable gain or loss upon a redemption or
exchange of shares of the Fund. Any loss realized upon the redemption or
exchange of shares with a tax holding period of six months or less will be
treated as a long-term capital loss to the extent of any distribution of net
long-term capital gains with respect to such shares. All or a portion of a loss
realized upon a redemption or other disposition of Fund shares may be disallowed
under "wash sale" rules if other Fund shares are purchased (whether through
reinvestment of dividends or otherwise) within the period beginning 30 days
before and ending 30 days after the date of such disposition.
The Fund's transactions in certain foreign currency options, futures or
forward contracts will be subject to special tax rules, the effect of which may
be to accelerate income to the Fund, defer Fund losses, cause adjustments in the
holding periods of Fund securities and convert capital gains or losses into
ordinary gains or losses. These rules may therefore affect the amount, timing
and character of the Fund's distributions to shareholders. In order to qualify
as a regulated investment company for federal income tax purposes, the Fund must
derive less than 30% of its annual gross income from gross gains from the sale
or other disposition of securities and certain other investments held for less
than three months and will limit its activities in forward contracts and other
investments to the extent necessary to comply with this requirement.
<PAGE>
The Fund may be subject to foreign withholding or other foreign taxes with
respect to income (possibly including, in some cases, capital gains) derived
from securities of foreign issuers. These taxes may be reduced or eliminated
under the terms of an applicable U.S. income tax treaty. In any taxable year in
which more than 50% of the value of the Fund's assets at the close of such
taxable year consists of stocks or securities of foreign corporations, the Fund
may elect to pass through to its shareholders foreign tax credits or deductions
with respect to foreign income or other qualified foreign taxes paid by the
Fund. In such case, shareholders will be required to include in gross income
their pro rata portion of such taxes and will be eligible to claim a credit (or
if they itemize their deductions, a deduction) with respect to such taxes,
subject to certain conditions and limitations under the Code. Certain foreign
exchange gains and losses realized by the Fund will be treated as ordinary
income and losses. Certain uses of foreign currency and related forward
contracts and investment by the Fund in the stock of certain "passive foreign
investment companies" may be limited or in the latter case a tax election may be
made, if available, in order to avoid imposition of a tax on the Fund.
The Fund follows the accounting practice known as equalization, which may
affect the amount, timing and character of distributions.
Annually, shareholders of the Fund that are not exempt from information
reporting requirements will receive information on Form 1099 to assist in
reporting the prior calendar year's distributions and redemptions (including
exchanges) on federal and state income tax returns. Dividends declared by the
Fund in October, November or December of any calendar year to shareholders of
record as of a date in such a month and paid the following January will be
treated for federal income tax purposes as having been received by shareholders
on December 31 of the year in which they are declared.
Under Section 3406 of the Code, individuals and other nonexempt
shareholders who have not provided to the Fund their correct taxpayer
identification numbers and certain certifications required by the IRS will be
subject to backup withholding of 31% on distributions made by the Fund and on
proceeds of redemptions or exchanges of shares of the Fund. In addition, the
Fund may be required to impose such backup withholding if it is notified by the
IRS or a broker that the taxpayer identification number is incorrect or that
backup withholding applies because of underreporting of interest or dividend
income. If such withholding is applicable, such distributions and proceeds will
be reduced by the amount of tax required to be withheld.
Special tax rules apply to IRA accounts (including penalties on certain
distributions and other transactions) and to other special classes of investors,
such as tax-exempt organizations, banks or insurance companies. Investors should
consult their tax advisers for more information.
Shareholders who are not United States persons should also consult their
tax advisers as to the potential application of certain U.S. taxes, including a
U.S. withholding tax at the rate of 30% (or at a lower treaty rate) on amounts
treated as ordinary income distributions to them, and of foreign taxes to their
investment in the Fund.
Dividends and other distributions may, of course, also be subject to state
and local taxes. Shareholders should consult their own tax advisers with respect
to state and local tax consequences of investing in the Fund.
How to Exchange Shares
Shares of the Fund may be exchanged for shares of the other funds in The Wright
Managed Equity Trust, The Wright Managed Income Trust, or The Wright EquiFund
Equity Trust at net asset value at the time of the exchange.
This exchange offer is available only in states where shares of such other
fund may be legally sold. Each exchange is subject to a minimum initial
investment of $1,000 in each fund.
The prospectus of each fund describes its investment objectives and
policies and shareholders should obtain a prospectus and consider these
objectives and policies carefully before requesting an exchange.
<PAGE>
Shareholders purchasing shares from an Authorized Dealer may effect
exchanges between the above funds through their Authorized Dealer who will
transmit information regarding the requested exchanges to the Transfer Agent.
First Data Investor Services Group makes exchanges at the next
determination of net asset value after receiving a request in writing mailed to
the address provided under "How to Buy Shares." Telephone exchanges are also
accepted if the exchange involves shares valued at less than $50,000 and on
deposit with First Data Investor Services Group and the investor has not
disclaimed in writing the use of the privilege. To effect such exchanges, call
First Data Investor Services Group at (800) 262-1122 or within Massachusetts,
(617) 573-9403 Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern Time). All
such telephone exchanges must be registered in the same name(s) and with the
same address and social security or other taxpayer identification number as are
registered with the fund from which the exchange is being made. Neither the
Trust, the Principal Underwriter nor First Data Investor Services Group will be
responsible for the authenticity of exchange instructions received by telephone,
provided that reasonable procedures have been followed to confirm that
instructions communicated are genuine, and if such procedures are not followed,
the Trust, the Fund, the Principal Underwriter or First Data Investor Services
Group may be liable for any losses due to unauthorized or fraudulent telephone
instructions. Telephone instructions will be tape recorded. In times of drastic
economic or market changes, a telephone exchange may be difficult to implement.
When calling to make a telephone exchange, shareholders should have their
account number and social security or other taxpayer identification numbers.
Generally, shareholders will be limited to four telephone exchange round-trips
per year and the Fund may refuse requests for telephone exchanges in excess of
four round-trips (a round-trip being the exchange out of the Fund into another
Wright Fund, then back to the Fund). The Trust believes that use of the
telephone exchange privilege by investors utilizing market-timing strategies
adversely affects the Fund. Therefore, the Trust generally will not honor
requests for telephone exchanges by shareholders identified by the Trust as
"market-timers."
Additional documentation may be required for exchange requests if shares
are registered in the name of a corporation, partnership or fiduciary. Any
exchange request may be rejected by the Fund or the Principal Underwriter at its
discretion. The exchange privilege may be changed or discontinued without
penalty at any time. Shareholders will be given sixty (60) days' notice prior to
any termination or material amendment of the exchange privilege. Contact the
Transfer Agent, First Data Investor Services Group, for additional information
concerning the exchange privilege.
Shareholders should be aware that for federal and state income tax
purposes, an exchange is a taxable transaction which may result in the
recognition of a gain or loss.
How to Redeem or Sell Shares
Shares of the Fund will be redeemed at the net asset value next determined after
receipt of a redemption request in good order as described below. Proceeds will
be mailed within seven days of such receipt. However, at various times the Fund
may be requested to redeem shares for which it has not yet received good
payment. If the shares to be redeemed represent an investment made by check, the
Fund may delay payment of redemption proceeds until the check has been collected
which, depending upon the location of the issuing bank, could take up to 15
days. For federal and state income tax purposes, a redemption of shares is a
taxable transaction which may result in recognition of a gain or loss.
Through Authorized Dealers: Shareholders using Authorized Dealers may
redeem shares through such dealers.
By Telephone: All shareholders are automatically eligible for the telephone
redemption privilege, unless the account application indicates otherwise.
Shareholders may effect a redemption by calling the Fund's Order Department at
(800) 225-6265 (8:30 a.m. to 4:00 p.m. Eastern time). In
<PAGE>
times when the volume of telephone redemptions is heavy, additional phone
lines will automatically be added by the Fund. However, in times of drastic
economic or market changes, a telephone redemption may be difficult to
implement. When calling to make a telephone redemption, shareholders should have
available their account number. A telephone redemption will be made at that
day's net asset value, provided that the telephone redemption request is
received prior to 4:00 p.m. on that day. Telephone redemption requests received
after 4:00 p.m. will be effected at the net asset value determined for the next
trading day. Payment will be made by check to the address of record or, if an
appropriate election was made on the application form, by wire transfer to the
bank account or address designated and normally, as indicated above, within one
business day after receipt of the redemption request in good order. Trust
Departments may make redemptions and deposit the proceeds in checking or other
accounts of clients, as specified in instructions furnished to the Fund at the
time of initially purchasing Fund shares. Neither the Trust, the Principal
Underwriter nor First Data Investor Services Group will be responsible for the
authenticity of redemption instructions received by telephone, provided that
reasonable procedures have been followed to confirm that the instructions
communicated are genuine, and if such procedures are not followed, the Trust,
the Fund, the Principal Underwriter or First Data Investor Services Group may be
liable for any losses due to unauthorized or fraudulent telephone instructions.
Also, shareholders may effect a redemption by calling the Funds' Transfer
Agent, First Data Investor Services Group, at (800) 262-1122 (8:30 a.m. to 4:00
p.m. Eastern time), if the redemption involves shares valued at less than
$50,000 and are on deposit with First Data Investor Services Group. Payment will
be made by check to the address of record. Telephone instructions will be tape
recorded.
By Mail: A shareholder may also redeem all or any number of shares at any
time by mail by delivering the request with a stock power to the Transfer Agent,
First Data Investor Services Group, Wright Managed Investment Funds, P.O. Box
1559, Boston, Massachusetts 02104. As in the case of telephone requests,
payments will normally be made within one business day after receipt of the
redemption request in good order. Good order means that the written redemption
requests or stock powers must be endorsed by the record owner(s) exactly as the
shares are registered and the signature(s) must be guaranteed by a member of
either the Securities Transfer Association's STAMP program or the New York Stock
Exchange's Medallion Signature Program, or certain banks, savings and loan
institutions, credit unions, securities dealers, securities exchanges, clearing
agencies and registered securities associations as required by a regulation of
the Securities and Exchange Commission and acceptable to First Data Investor
Services Group. In addition, in some cases, good order may require the
furnishing of additional documents, such as where shares are registered in the
name of a corporation, partnership or fiduciary.
The right to redeem shares of the Fund and to receive payment therefor may
be suspended at times (a) when the securities markets are closed, other than
customary weekend and holiday closings, (b) when trading is restricted for any
reason, (c) when an emergency exists as a result of which disposal by the Fund
of securities owned by it is not reasonably practicable or it is not reasonably
practicable for the Fund fairly to determine the value of its net assets, or (d)
when the Securities and Exchange Commission by order permits a suspension of the
right of redemption or a postponement of the date of payment or redemption.
Although the Fund normally intends to redeem shares in cash, the Fund
reserves the right to deliver the proceeds of redemptions in the form of
portfolio securities if deemed advisable by the Trustees. The value of any such
portfolio securities distributed will be determined in the manner as described
under "How the Fund Values its Shares" and may be more or less than a
shareholder's cost depending upon the market value of portfolio securities at
the time the redemption is made. If the amount of the Fund's shares to be
redeemed for a shareholder or a sub-account within a 90-day period exceeds the
lesser of $250,000 or 1% of the aggregate net asset value of the Fund at the
beginning of such period, the Fund reserves the right to deliver all or any part
of such excess in the form of portfolio securities. If portfolio securities were
distributed in lieu of cash, the shareholder would
<PAGE>
normally incur transaction costs upon the disposition of any such
securities.
Due to the relatively high cost of maintaining small accounts, the Fund
reserves the right to redeem fully at net asset value any account (including
accounts of clients of fiduciaries) which at any time, due to redemption or
transfer, amounts to less than $1,000 for the Fund; any shareholder who makes a
partial redemption which reduces his account to less than $1,000 would be
subject to the Fund's right to redeem such account. However, no such redemption
would be required by the Fund if the cause of the low account balance was a
reduction in the net asset value of Fund shares. Prior to the execution of any
such redemption, notice will be sent and the shareholder will be allowed 60 days
from the date of notice to make an additional investment to meet the required
minimum of $1,000. Thus, an investor making an initial investment of $1,000
would not be able to redeem shares without being subject to this policy.
Performance Information
From time to time, the Fund may publish its total return in advertisements and
communications to shareholders. The Fund's total return is determined by
computing the annual percentage change in value of $1,000 invested at the
maximum public offering price (net asset value) for specified periods ending
with the most recent calendar quarter, assuming reinvestment of all
distributions. Investors should note that the investment results of the Fund
will fluctuate over time, and any presentation of the Fund's total return for
any prior period should not be considered as a representation of what an
investment may earn or what an investor's total return may be in any future
period.
Other Information
The Trust is a business trust established under Massachusetts law and is a
no-load, open-end management investment company. The Trust was established
pursuant to a Declaration of Trust dated June 17, 1982, as amended and restated
December 21, 1987.
The Trust's shares of beneficial interest have no par value. Shares of the
Trust may be issued in two or more series or "Funds". Each Fund's shares may be
issued in an unlimited number by the Trustees of the Trust. Each share of a Fund
represents an equal proportionate beneficial interest in that Fund and, when
issued and outstanding, the shares are fully paid and non-assessable by the
Trust. Shareholders are entitled to one vote for each full share held.
Fractional shares may be voted in proportion to the amount of the net asset
value of a Fund which they represent. Voting rights are not cumulative, which
means that the holders of more than 50% of the shares voting for the election of
the Trustees of the Trust can elect 100% of the Trustees and, in such event, the
holders of the remaining less than 50% of the shares voting on the matter will
not be able to elect any Trustees. Shares have no preemptive or conversion
rights and are freely transferable. Upon liquidation of the Fund, shareholders
are entitled to share pro rata in the net assets of the Fund available for
distribution to shareholders, and in any general assets of the Trust not
allocated to a particular fund by the Trustees.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event, the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with the Trust's by-laws, the Trustees shall continue to hold office and may
appoint successor Trustees.
The Trust's by-laws provide that no persons shall serve as a Trustee if
shareholders holding two-thirds of the outstanding shares have removed him from
that office either by a written declaration filed with the Trust's custodian or
by votes cast at a meeting called for that purpose. The by-laws further provide
that the Trustees shall promptly call a meeting of shareholders for the purpose
of voting upon a question of removal of a Trustee when requested so to do by the
record holders of not less than 10 per centum of the outstanding shares.
<PAGE>
Tax-Sheltered Retirement Plans
The Fund is available for investment by individual retirement account plans for
individuals and their non-employed spouses, pension and profit sharing plans for
self-employed individuals, corporations and non-profit organizations, or 401(k)
tax-sheltered retirement plans. The minimum initial purchase of $1,000 will be
waived for investments in 401(k) plans.
For more information, write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call:
(800) 888-9471
<PAGE>
Wright
International
Blue Chip
Equities Fund
PROSPECTUS
May 1, 1996
<PAGE>
Wright International
Blue Chip Equities Fund
PROSPECTUS
May 1, 1996
The Wright Managed Equity Trust
======================================================================
Investment Adviser
Wright Investors' Service, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Principal Underwriter
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Administrator
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
Custodian
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
Transfer Agent
First Data Investor Services Group
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
24 Federal Street
Boston, Massachusetts 02110
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
WRIGHT INTERNATIONAL
BLUE CHIP EQUITIES FUND
============================================================================
a series of
The Wright Managed Equity Trust
24 Federal Street
Boston, Massachusetts 02110
=============================================================================
Table of Contents Page
Additional Information about the Trust............................ 2
Additional Investment Information................................. 2
Officers and Trustees............................................. 7
Control Persons and Principal Holders of Shares................... 9
Investment Advisory and Administrative Services................... 9
Custodian......................................................... 11
Independent Certified Public Accountants.......................... 11
Brokerage Allocation.............................................. 11
Principal Underwriter............................................. 13
Performance Information........................................... 14
Financial Statements.............................................. 16
Appendix ......................................................... 25
This Statement of Additional Information is NOT a prospectus and is authorized
for distribution to prospective investors only if preceded or accompanied by the
current Prospectus of the Fund dated May 1, 1996, as supplemented from time to
time, which is incorporated herein by reference. A copy of the Prospectus may be
obtained without charge from Wright Investors' Service Distributors, Inc., 1000
Lafayette Boulevard, Bridgeport, Connecticut 06604 (800-888-9471).
<PAGE>
Additional Information about the Trust
Unless otherwise defined herein, capitalized terms have the meaning given
to them in the Prospectus.
The Trust's Declaration of Trust may be amended with the affirmative vote
of a majority of the outstanding shares of such Trust or, if the interests of a
particular Fund are affected, a majority of such Fund's outstanding shares. The
Trustees are authorized to make amendments to a Declaration of Trust that do not
have a material adverse effect on the interests of shareholders. The Trust may
be terminated (i) upon the sale of the Trust's assets to another diversified
open-end management investment company, if approved by the holders of two-thirds
of the outstanding shares of the Trust, except that if the Trustees recommend
such sale of assets, the approval by the vote of a majority of the outstanding
shares will be sufficient, or (ii) upon liquidation and distribution of the
assets of the Trust, if approved by a majority of its Trustees or by the vote of
a majority of the Trust's outstanding shares. If not so terminated, the Trust
may continue indefinitely.
The Trust's Declaration of Trust further provides that the Trust's Trustees
will not be liable for errors of judgment or mistakes of fact or law; however,
nothing in the Declaration of Trust protects a Trustee against any liability to
which he would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct of
his office.
The Trust is an organization of the type commonly known as a "Massachusetts
business trust." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the Trust. The Trust's Declaration of Trust contains an express
disclaimer of shareholder liability in connection with the Trust property or the
acts, obligations or affairs of the Trust. The Declaration of Trust also
provides for indemnification out of the Trust property of any shareholder held
personally liable for the claims and liabilities to which a shareholder may
become subject by reason of being or having been a shareholder. Thus, the risk
of a shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which the Trust itself would be unable to meet its
obligations. The risk of any shareholder incurring any liability for the
obligations of the Trust is extremely remote.
In addition to the Fund, the Trust has three additional series: Wright
Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund and
Wright Quality Core Equities Fund, that are being offered pursuant to a separate
prospectus and statement of additional information.
Additional Investment Information
Foreign Investments
Foreign Securities. The Fund may invest in foreign securities. Investing in
securities of foreign governments or securities issued by companies whose
principal business activities are outside the United States may involve
significant risks not associated with domestic investments. It is anticipated
that in most cases, the best available market for foreign securities will be on
exchanges or in over-the-counter markets located outside the U.S. Foreign stock
markets, while growing in volume and sophistication, are generally not as
developed as those in the U.S. Securities of some foreign issuers (particularly
those located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In addition, foreign brokerage
commissions are generally higher than commissions on securities traded in
<PAGE>
the U.S. and may be non-negotiable. In general, there is less overall
governmental supervision and regulation of securities exchanges, brokers and
listed companies than in the U.S.
The limited liquidity of certain foreign markets in which the Fund may
invest may affect the Fund's ability to accurately value its assets invested in
such market. In addition, the settlement systems of certain foreign countries
are less developed than the U.S., which may impede the Fund's ability to effect
portfolio transactions. Consider also that there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing and financial
reporting requirements comparable to those applicable to domestic issuers.
Investments in foreign securities also involve the risk of possible adverse
changes in exchange control regulations, expropriation or confiscatory taxation,
limitation on removal of funds or other assets of the Fund, political or
financial instability or diplomatic and other developments which could affect
such investments. Further, economies of particular countries or areas of the
world may differ favorably or unfavorably from the economy of the U.S.
Foreign Currency Exchange Transactions. The Fund may engage in foreign
currency exchange transactions. Investments in securities of foreign governments
and companies whose principal business activities are located outside of the
United States will frequently involve currencies of foreign countries. In
addition, assets of the Fund may temporarily be held in bank deposits in foreign
currencies during the completion of investment programs. Therefore, the value of
the Fund's assets, as measured in U.S. dollars, may be affected favorably or
unfavorably by changes in foreign currency exchange rates and exchange control
regulations. Although the Fund values its assets daily in U.S. dollars, the Fund
does not intend to convert its holdings of foreign currencies into U.S. dollars
on a daily basis. The Fund may conduct its foreign currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market. The Fund will convert currency on a spot basis
from time to time and will incur costs in connection with such currency
conversion. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference (the "spread")
between the prices at which they are buying and selling various currencies.
Thus, a dealer may offer to sell a foreign currency to the Fund at one rate,
while offering a lesser rate of exchange should the Fund desire to resell that
currency to the dealer. The Fund does not intend to speculate in foreign
currency exchange rates.
As an alternative to spot transactions, the Fund may enter into contracts
to purchase or sell foreign currencies at a future date ("forward" contracts) or
purchase currency call or put options. A forward contract involves an obligation
to purchase or sell a specific currency at a future date and price fixed by
agreement between the parties at the time of entering into the contract. These
contracts are traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers. A forward contract
generally involves no deposit requirement and no commissions are charged at any
stage for trades. The Fund intends to enter into such contracts only on net
terms. The purchase of a put or call option is an alternative to the purchase or
sale of forward contracts and will be used if the option premiums are less then
those in the forward contract market.
The Fund may enter into forward contracts only under two circumstances.
First, when the Fund enters into a contract for the purchase or sale of a
security quoted or dominated in a foreign currency, it may desire to "lock in"
the U.S. dollar price of the security. This is accomplished by entering into a
forward con-
<PAGE>
tract for the purchase or sale, for a fixed amount of U.S. dollars, of the
amount of foreign currency involved in the underlying security transaction
("transaction hedging"). Such forward contract transactions will enable the Fund
to protect itself against a possible loss resulting from an adverse change in
the relationship between the U.S. dollar and the subject foreign currency during
the period between the date the security is purchased or sold and the date of
payment for the security.
Second, when the Fund's investment adviser believes that the currency of a
particular foreign country may suffer a substantial decline against the U.S.
dollar, the Fund may enter into a forward contract to sell, for a fixed amount
of U.S. dollars, the amount of foreign currency approximating the value of some
or all of the securities quoted or denominated in such foreign currency. The
precise matching of the forward contract amounts and the value of the securities
involved will not generally be possible. The future value of such securities in
foreign currencies will change as a consequence of fluctuations in the market
value of those securities between the date the forward contract is entered into
and the date it matures. The projection of currency exchange rates and the
implementation of a short-term hedging strategy are highly uncertain. As an
operating policy, the Fund does not intend to enter into forward contracts for
such hedging purposes on a regular or continuous basis. The Fund will also not
enter into such forward contracts or maintain a net exposure to such contracts
if the contracts would obligate the Fund to deliver an amount of foreign
currency in excess of the value of the Fund's securities or other assets
denominated in that currency.
The Fund's custodian will place cash or liquid, high-grade debt securities
in a segregated account. The amount of such segregated assets will be at least
equal to the value of the Fund's total assets committed to the consummation of
forward contracts involving the purchase of forward currency. If the value of
the securities placed in the segregated account declines, additional cash or
securities will be placed in the account on a daily basis so that the value of
the amount will equal the amount of the Fund's commitments with respect to such
contracts.
The Fund generally will not enter into a forward contract with a term of
greater than one year. At the maturity of a forward contract, the Fund may elect
to sell the portfolio security and make delivery of the foreign currency.
Alternatively, the Fund may retain the security and terminate its contractual
obligation to deliver the foreign currency by purchasing an identical offsetting
contract from the same currency trader.
It is impossible to forecast with precision the market value of portfolio
securities at the expiration of a forward contract. Accordingly, it may be
necessary for the Fund to purchase additional foreign currency on the spot
market (and bear the expense of such purchase) if the Fund intends to sell the
security and the market value of the security is less than the amount of foreign
currency that the Fund is obligated to deliver. Conversely, it may be necessary
to sell on the spot market some of the foreign currency received upon the sale
of the portfolio security if its market value exceeds the amount of foreign
currency that the Fund is obligated to deliver.
If the Fund retains the portfolio security and engages in an offsetting
transaction, the Fund will incur a gain or a loss (as described below) to the
extent that there has been a change in forward contract prices. If the Fund
engages in an offsetting transaction, it may subsequently enter into a new
forward contract to sell the foreign currency. Should forward contract prices
decline during the period between the date the Fund enters into a forward
contract for the sale of the foreign currency and the date it enters into an
offsetting contract for the purchase of the foreign currency, the Fund will
realize a gain to the extent that
<PAGE>
the price of the currency it has agreed to sell exceeds the price of the
currency it has agreed to purchase. Should forward contract prices increase, the
Fund will suffer a loss to the extent that the price of the currency it has
agreed to purchase exceeds the price of the currency it has agreed to sell.
The Fund will not speculate in forward contracts and will limit its
dealings in such contracts to the transactions described above. Of course, the
Fund is not required to enter into such transactions with respect to its
portfolio securities and will not do so unless deemed appropriate by its
investment adviser. This method of protecting the value of the Fund's securities
against a decline in the value of a currency does not eliminate fluctuations in
the underlying prices of the securities. It simply establishes a rate of
exchange which the Fund can achieve at some future time. Additionally, although
such contracts tend to minimize the risk of loss due to a decline in the value
of the hedged currency, they also tend to limit any potential gain which might
be realized if the value of such currency increases.
Lending Portfolio Securities
Cash equivalents include certificates of deposit, commercial paper and
other short-term money market instruments. The Fund would have the right to call
a loan and obtain the securities loaned at any time on up to five business days'
notice. The Fund would not have the right to vote any securities having voting
rights during the existence of a loan, but would call the loan in anticipation
of an important vote to be taken among holders of the securities or the giving
or withholding of their consent on a material matter affecting the investment.
Investment Restrictions - The following investment restrictions have been
adopted by the Fund and may be changed only by the vote of a majority of the
Fund's outstanding voting securities, which as used in this Statement of
Additional Information means the lesser of (a) 67% of the shares of the Fund if
the holders of more than 50% of the shares are present or represented at the
meeting or (b) more than 50% of the shares of the Fund. Accordingly, the Fund
may not:
(1) Borrow money in excess of 1/3 of the current market value of the net
assets of the Fund (excluding the amount borrowed) and then only if
such borrowing is incurred as a temporary measure for extraordinary or
emergency purposes or to facilitate the orderly sale of portfolio
securities to accommodate redemption requests; or issue any securities
of the Fund other than its shares of beneficial interest except as
appropriate to evidence indebtedness which the Fund is permitted to
incur. To the extent that the Fund purchases additional portfolio
securities while such borrowings are outstanding, the Fund may be
considered to be leveraging its assets, which entails the risks that
the costs of borrowing may exceed the return from the securities
purchased. (The Trust anticipates paying interest on borrowed money at
rates comparable to the Fund's yield and the Trust has no intention of
attempting to increase the Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate its assets to an extent greater than
1/3 of the total assets of the Fund taken at market;
(3) Invest more than 5% of the Fund's total assets taken at current market
value in the securities of any one issuer or allow the Fund to purchase
more than 10% of the voting securities of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by
<PAGE>
those officers and Trustees of the Trust or its manager, investment
adviser or administrator who own individually more than 1/2 of 1% of
the issuer's securities;
(5) Purchase securities on margin or make short sales except sales
against the box, write or purchase or sell any put options,
or purchase warrants;
(6) Buy or sell real estate, commodities, or commodity contracts unless
acquired as a result of ownership of securities; except that the Fund
may purchase and sell futures contracts on securities, indices,
currency and other financial instruments, and options on such
contracts;
(7) Purchase any securities which would cause more than 25% of the market
value of the Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in obligations issued or guaranteed by the
U.S. Government or its agencies or instrumentalities;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except (i) through the loan of a portfolio security, (ii)
by entering into repurchase agreements and (iii) to the extent that the
purchase of debt instruments for the Fund in accordance with the Fund's
investment objective and policies may be deemed to be loans; or
(10) Purchase from or sell to any of its Trustees or officers, its manager,
administrator or investment adviser, its principal underwriter, if any,
or the officers or directors of said manager, administrator, investment
adviser or principal underwriter, portfolio securities of the Fund.
The Fund has adopted the following nonfundamental policies which may be
changed without shareholder approval. The Fund will not purchase oil, gas or
other mineral leases or purchase partnership interests in oil, gas or other
mineral exploration or development programs; the Fund will not purchase or sell
real property (including limited partnership interests, but excluding readily
marketable interests in real estate investment trusts or readily marketable
securities of companies which invest in real estate); the Fund will not purchase
warrants if, as a result of such purchase, more than 5% of the Fund's net
assets, taken at current value, would be invested in warrants (and the value of
such warrants which are not listed on the New York or American Stock Exchange
may not exceed 2% of the Fund's net assets); this policy does not apply to or
restrict warrants acquired by the Fund in units or attached to securities,
inasmuch as such warrants are deemed to be without value; the Fund has no
current intention of entering into repurchase agreements; the Fund will not
invest (1) more than 15% of its net assets in illiquid investments, including
repurchase agreements maturing in more than seven days, securities that are not
readily marketable and restricted securities not eligible for resale pursuant to
Rule 144A under the Securities Act of 1933 (the "1933 Act"); (2) more than 10%
of its net assets in restricted securities, excluding securities eligible for
resale pursuant to Rule 144A or foreign securities which are offered or sold
outside the United States in accordance with Regulation S under the 1933 Act; or
(3) more than 15% of its net assets in restricted securities (including those
eligible for resale under Rule 144A).
If a percentage restriction contained in the Fund's investment policies is
adhered to at the time of invest-
<PAGE>
ment, a later increase or decrease in the percentage resulting from a
change in the value of portfolio securities or the Fund's net assets will not be
considered a violation of such restriction.
Officers and Trustees
The officers and Trustees of the Trust are listed below. Except as
indicated, each individual has held the office shown or other offices in the
same company for the last five years. Those Trustees who are "interested
persons" (as defined in the 1940 Act) of the Trust, Wright, The Winthrop
Corporation ("Winthrop"), Eaton Vance, Eaton Vance's wholly-owned subsidiary
Boston Management and Research ("BMR"), Eaton Vance's parent, Eaton Vance Corp.
(`EVC'), or by Eaton Vance's and BMR's Trustee, Eaton Vance, Inc. ("EV") by
virtue of their affiliation with either the Trust, Wright, Winthrop, Eaton
Vance, BMR, EVC or EV, are indicated by an asterisk (*).
PETER M. DONOVAN (53), President and Trustee*
President, Chief Executive Officer and Director of Wright and Winthrop; Vice
President, Treasurer and a Director of Wright Investors' Service Distributors,
Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, JR. (69), Vice President, Secretary and Trustee*
Vice President of Eaton Vance, BMR, EV and EVC and Director, EV and EVC;
Director, Trustee and officer of various investment companies managed by Eaton
Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
WINTHROP S. EMMET (85), Trustee
Retired New York City Attorney at Law; Trust Officer, First National City Bank,
New York, NY (1963-1971).
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (72), Trustee
President Emeritus, University of Bridgeport (1987- present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company.
Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490
A. M. MOODY III (59), Vice President & Trustee*
Senior Vice President, Wright and Winthrop; President, Wright Investors' Service
Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
LLOYD F. PIERCE (77), Trustee
Retired Vice Chairman (prior to 1984 - President), People's Bank, Bridgeport,
CT; Member, Board of Trustees, People's Bank, Bridgeport, CT; Board of
Directors, Southern Connecticut Gas Company; Chairman, Board of Directors,
COSINE.
Address: 125 Gull Circle North, Daytona Beach, FL 32119
GEORGE R. PREFER (61), Trustee
Retired President and Chief Executive Officer, Muller Data Corp., New York, NY
(President 1983-1986) (1989-1990); President and Chief Executive Officer,
InvestData Corporation, A Mellon Financial Services Company (1986-1989)
Address: 7738 Silver Bell Drive, Sarasota, FL 34241
RAYMOND VAN HOUTTE (71), Trustee
President Emeritus and Counselor of The Tompkins County Trust Company, Ithaca,
NY since January 1989; President and Chief Executive Officer, The Tompkins
County Trust Company (1973-1988); President, New York State Bankers
Association 1987-1988; Director, McGraw Housing Co., Inc., Deanco, Inc.,
Evaporated Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JUDITH R. CORCHARD (57), Vice President
Executive Vice President, Senior Investment Officer, Chairman of The Investment
Committee and Director of Wright and Winthrop.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
<PAGE>
JAMES L. O'CONNOR (51), Treasurer
Vice President of Eaton Vance and predecessor since April 1987 and Vice
President of BMR and EV; Officer of various investment companies managed by
Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
WILLIAM J. AUSTIN, JR. (44), Assistant Treasurer
Assistant Vice President of Eaton Vance, BMR and EV. Officer of various
investment companies managed by Eaton Vance or BMR. Mr. Austin was elected
Assistant Treasurer of the Trust on December 18, 1991.
Address: 24 Federal Street, Boston, MA 02110
JANET E. SANDERS (60), Assistant Treasurer and Assistant Secretary
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
A. JOHN MURPHY (33), Assistant Secretary
Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994;
employee of Eaton Vance since March 1993. State Regulations Supervisor, The
Boston Company (1991-1993) and Registration Specialist, Fidelity Management &
Research Co. (1986-1991). Officer of various investment companies managed by
Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trust on
June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
ERIC G. WOODBURY (38), Assistant Secretary
Vice President of Eaton Vance, BMR and EV since February 1993; formerly,
associate attorney at Dechert, Price & Rhoads and Gaston & Snow. Officer of
various investment companies managed by Eaton Vance or BMR. Mr. Woodbury was
elected Assistant Secretary of the Trust on June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
All of the Trustees and officers hold identical positions with The Wright
Managed Income Trust, The Wright Managed Blue Chip Series Trust (except Mr.
Miles) and The Wright EquiFund Equity Trust. The fees and expenses of those
Trustees of the Trust (Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte) who
are not affiliated persons of the Trust are paid by the Fund and other series of
the Trust. They also received additional payments from other investment
companies for which Wright provides investment advisory services. The Trustees
who are "interested persons" of the Trust receive no compensation from the
Trust. The Trust does not have a retirement plan for its Trustees. For Trustee
compensation for the fiscal year ended December 31, 1995, see the following
table.
COMPENSATION TABLE
Fiscal Year Ended December 31, 1995
Aggregate Com- Esti- Total
pensation from The Pension mated Compen-
Wright Managed Benefits Annual sation
Trustees Equity Trust Accrued Benefits Paid(1)
- ------------------------------------------------------------------------
Winthrop S. Emmet $1,250 None None $5,000
Leland Miles $1,250 None None $4,750
Lloyd F. Pierce $1,250 None None $5,000
George R. Prefer $1,250 None None $5,000
Raymond Van Houtte $1,250 None None $5,000
- ------------------------------------------------------------------------
(1) Total compensation paid is from The Wright Managed Equity Trust
(4 Funds) and the other boards in the Wright Fund complex (29 Funds) for a
total of 33 Funds.
Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the
Special Nominating Committee of the Trustees of the Trust. The Special
Nominating Committee's function is selecting and nominating individuals to fill
vacancies, as and when they occur, in the ranks of those Trustees who are not
"interested persons" of the Trust, Eaton Vance, Wright or Winthrop. The Trust
does not have a designated audit committee since the full board performs the
functions of such committee.
<PAGE>
Control Persons and
Principal Holders of Shares
As of March 31, 1996, the Trustees and officers of the Trust, as a group,
owned in the aggregate less than 1% of the outstanding shares of the Fund. The
Fund's shares are held primarily by trust departments of depository institutions
and trust companies either for their own account or for the accounts of their
clients. From time to time, several of these trust departments are the record
owners of 5% or more of the outstanding shares of the Fund. To date, the Fund's
experience has been that such shareholders do not continuously hold in excess of
5% or more of the Fund's outstanding shares for extended periods of time. Should
a shareholder continuously hold 5% or more of the Fund's outstanding shares for
an extended period of time (a period in excess of a year), this would be
disclosed by an amendment to this Statement of Additional Information showing
such shareholder's name, address and percentage of ownership. Upon request, the
Trust will provide shareholders with a list of all shareholders holding 5% or
more of the Fund's outstanding shares as of a current date.
As of March 31, 1996, the number of other trust departments which were the
record owners of more than 5% of the outstanding shares of the Fund was three
Investment Advisory
and Administrative Services
The Fund has engaged Winthrop to act as its investment adviser pursuant to
its Investment Advisory Contract. Pursuant to a service agreement effective
February 1, 1996 between Winthrop and Wright, Wright, acting under the general
supervision of the Trust's Trustees, furnishes the Fund with investment advice
and management services. Winthrop supervises Wright's performance of this
function and retains its contractual obligations under its Investment Advisory
Contract with the Fund. The estate of John Winthrop Wright may be considered a
controlling person of Winthrop and Wright by reason of its ownership of 29% of
the outstanding shares of Winthrop. The Trustees of the Trust are responsible
for the general oversight of the conduct of the Fund's business.
Pursuant to the Investment Advisory Contract, Wright will carry out the
investment and reinvestment of the assets of the Fund, will furnish continuously
an investment program with respect to the Fund, will determine which securities
should be purchased, sold or exchanged, and will implement such determinations.
Wright will furnish to the Fund investment advice and management services,
office space, equipment and clerical personnel, and investment advisory,
statistical and research facilities. In addition, Wright has arranged for
certain members of the Eaton Vance and Wright organizations to serve without
salary as officers or Trustees of the Trust. In return for these services, the
Fund is obligated to pay a monthly advisory fee calculated at the rates set
forth in the Fund's current Prospectus. Effective February 1, 1996, Winthrop
will cause the Fund to pay to Wright the entire amount of the advisory fee
payable under the Investment Advisory Contract with Winthrop. As of December 31,
1995, the Fund had net assets of $237,175,946. For the fiscal year ended
December 31, 1995, the Fund paid Wright advisory fees of $1,682,897 (equivalent
to 0.77% of the average daily net assets for such year). For the fiscal year
ended December 31, 1994, the Fund paid Wright advisory fees of $1,394,066
(equivalent to 0.77% of the average daily net assets for such year. For the
fiscal year ended December 31, 1993, the Fund paid Wright advisory fees of
$609,489 (equivalent to 0.75% of the average daily net assets for such year.
The Trust has engaged Eaton Vance to act as the administrator for each Fund
pursuant to an Adminis-
<PAGE>
tration Agreement. Eaton Vance receives a monthly administration fee at the
annual rates set forth in the Fund's current Prospectus. For the fiscal years
ended December 31, 1995, 1994 and 1993, the Fund paid Eaton Vance administration
fees of $270,853, $248,916 and $162,531, respectively.
Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a
wholly owned subsidiary of Eaton Vance. Eaton Vance and BMR are both
Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The
Directors of EV are Landon T. Clay, H. Day Brigham, Jr., M. Dozier Gardner,
James B. Hawkes and Benjamin A. Rowland, Jr. The Directors of EVC consist of the
same persons and John G. L. Cabot and Ralph Z. Sorenson. Mr. Clay is chairman,
and Mr. Gardner is president and chief executive officer of EVC, Eaton Vance,
BMR and EV. All of the issued and outstanding shares of Eaton Vance and of EV
are owned by EVC. All of the issued and outstanding shares of BMR are owned by
Eaton Vance. All shares of the outstanding Voting Common Stock of EVC are
deposited in a Voting Trust which expires on December 31, 1996, the Voting
Trustees of which are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. The
Voting Trustees have unrestricted voting rights for the election of Directors of
EVC. All of the outstanding voting trust receipts issued under said Voting Trust
are owned by certain of the officers of Eaton Vance and BMR who are also
officers and Directors of EVC and EV. As of March 31, 1996, Messrs. Clay,
Gardner and Hawkes each owned 24% of such voting trust receipts and Messrs.
Rowland and Brigham owned 15% and 13%, respectively, of such voting trust
receipts. Mr. Brigham is an officer and Trustee of the Trust, and a member of
the EVC, Eaton Vance, BMR and EV organizations. Messrs. Austin, Murphy, O'Connor
and Woodbury and Ms. Sanders are officers of the Trust, and are also members of
the Eaton Vance, BMR and EV organizations. Eaton Vance will receive the fees
paid under the Administration Agreement.
EVC owns all of the stock of Energex Energy Corporation which is engaged in
oil and gas exploration and development. In addition, Eaton Vance owns all the
stock of Northeast Properties, Inc., which is engaged in real estate investment.
EVC owns all of the stock of Fulcrum Management, Inc. and MinVen, Inc., which
are engaged in precious metal mining venture investment and management. EVC, EV,
Eaton Vance and BMR may also enter into other businesses.
The Trust will be responsible for all of its expenses not assumed by Wright
under the Investment Advisory Contract or by Eaton Vance under the
Administration Agreement, including, without limitation, the fees and expenses
of its custodian and transfer agent, including those incurred for determining
the Fund's net asset value and keeping the Fund's books; the cost of share
certificates; membership dues in investment company organizations; brokerage
commissions and fees; fees and expenses of registering its shares; expenses of
reports to shareholders, proxy statements, and other expenses of shareholders'
meetings; insurance premiums; printing and mailing expenses; interest, taxes and
corporate fees; legal and accounting expenses; expenses of Trustees not
affiliated with Eaton Vance or Wright; distribution expenses incurred pursuant
to the Trust's distribution plan; and investment advisory and administration
fees. The Trust will also bear expenses incurred in connection with litigation
in which the Trust is a party and the legal obligation the Trust may have to
indemnify its officers and Trustees with respect thereto.
The Trust's Investment Advisory Contract and Administration Agreement will
remain in effect until February 28, 1997. The Trust's Investment Advisory
Contract may be continued with respect to the Fund from year to year thereafter
so long as such continuance
<PAGE>
after February 28, 1997 is approved at least annually (i) by the vote of a
majority of the Trustees who are not "interested persons" of the Trust, Eaton
Vance or Wright cast in person at a meeting specifically called for the purpose
of voting on such approval and (ii) by the Board of Trustees of the Trust or by
vote of a majority of the outstanding shares of the Fund. The Trust's
Administration Agreement may be continued from year to year after February 28,
1997 so long as such continuance is approved annually by the vote of a majority
of the Trustees. Each agreement may be terminated as to the Fund at any time
without penalty on sixty (60) days' written notice by the Board of Trustees of
either party, or by vote of the majority of the outstanding shares of the Fund,
and each agreement will terminate automatically in the event of its assignment.
Each agreement provides that, in the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of its obligations or duties to the Trust
under such agreement on the part of Eaton Vance or Wright, Eaton Vance or Wright
will not be liable to the Trust for any loss incurred.
Custodian
Investors Bank & Trust Company ("IBT"), 89 South Street, Boston,
Massachusetts, acts as custodian for the Fund. IBT has the custody of all cash
and securities of the Fund, maintains the Fund's general ledgers and computes
the daily net asset value per share. In such capacity it attends to details in
connection with the sale, exchange, substitution, transfer or other dealings
with the Fund's investments, receives and disburses all funds and performs
various other ministerial duties upon receipt of proper instructions from the
Fund. IBT charges custody fees which are competitive within the industry. A
portion of the custody fee for each fund served by IBT is based upon a schedule
of percentages applied to the aggregate assets of those funds managed by Eaton
Vance for which IBT serves as custodian, the fees so determined being then
allocated among such funds relative to their size. These fees are then reduced
by a credit for cash balances of the particular fund at IBT equal to 75% of the
91-day, U.S. Treasury Bill auction rate applied to the particular fund's average
daily collected balances for the week. In addition, each fund pays a fee based
on the number of portfolio transactions and a fee for bookkeeping and valuation
services.
Independent Certified
Public Accountants
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts, are the
Trust's independent certified public accountants, providing audit services, tax
return preparation, and assistance and consultation with respect to the
preparation of filings with the Securities and Exchange Commission.
Brokerage Allocation
Wright places the portfolio security transactions for the Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments. Wright seeks to execute portfolio security transactions on the most
favorable terms and in the most effective manner possible. In seeking best
execution, Wright will use its best judgment in evaluating the terms of a
transaction, and will give consideration to various relevant factors, including
without limitation the size and type of the transaction, the nature and
character of the markets for the security, the confidentiality, speed and
cer-
<PAGE>
tainty of effective execution required for the transaction, the reputation,
experience and financial condition of the broker-dealer and the value and
quality of service rendered by the broker-dealer in other transactions, and the
reasonableness of the brokerage commission or markup, if any.
It is expected that on frequent occasions there will be many broker-dealer
firms which will meet the foregoing criteria for a particular transaction. In
selecting among such firms, the Fund may give consideration to those firms which
supply brokerage and research services, quotations and statistical and other
information to Wright for its use in servicing its accounts. The Fund may
include firms which purchase investment services from Wright. The term
"brokerage and research services" includes advice as to the value of securities,
the advisability of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of securities; furnishing
analyses and reports concerning issuers, industries, securities, economic
factors and trends, portfolio strategy and the performance of accounts; and
effecting securities transactions and performing functions incidental thereto
(such as clearance and settlement). Such services and information may be useful
and of value to Wright in servicing all or less than all of its accounts and the
services and information furnished by a particular firm may not necessarily be
used in connection with the account which paid brokerage commissions to such
firm. The advisory fee paid by the Fund to Wright is not reduced as a
consequence of Wright's receipt of such services and information. While such
services and information are not expected to reduce Wright's normal research
activities and expenses, Wright would, through use of such services and
information, avoid the additional expenses which would be incurred if it should
attempt to develop comparable services and information through its own staff.
Subject to the requirement that Wright shall use its best efforts to seek
to execute the Fund's portfolio security transactions at advantageous prices and
at reasonably competitive commission rates, Wright, as indicated above, is
authorized to consider as a factor in the selection of any broker-dealer firm
with whom the Fund's portfolio orders may be placed the fact that such firm has
sold or is selling shares of the Fund or of other investment companies sponsored
by Wright. This policy is consistent with a rule of the National Association of
Securities Dealers, Inc., which rule provides that no firm which is a member of
the Association shall favor or disfavor the distribution of shares of any
particular investment company or group of investment companies on the basis of
brokerage commissions received or expected by such firm from any source.
Under the Trust's Investment Advisory Contract, Wright has the authority to
pay commissions on portfolio transactions for brokerage and research services
exceeding that which other brokers or dealers might charge provided certain
conditions are met. This authority will not be exercised, however, until the
Fund's Prospectus or this Statement of Additional Information has been
supplemented or amended to disclose the conditions under which Wright proposes
to do so.
The Trust's Investment Advisory Contract expressly recognizes the practices
which are provided for in Section 28(e) of the Securities Exchange Act of 1934
by authorizing the selection of a broker or dealer which charges the Fund a
commission which is in excess of the amount of commission another broker or
dealer would have charged for effecting that transaction if it is determined in
good faith that such commission was reasonable in relation to the value of the
brokerage and research services which have been provided.
During the fiscal years ended December 31, 1993, 1994 and 1995, the Fund
paid aggregate brokerage commissions of $248,20, $722,613 and $241,321,
respectively, on portfolio transactions.
<PAGE>
Principal Underwriter
The Trust has adopted a Distribution Plan (the "Plan") on behalf of the
Fund as defined in Rule 12b-1 under the 1940 Act. The Trust's Plan specifically
allows that expenses covered by the Plan may include direct and indirect
expenses incurred by any separate distributor or distributors under agreement
with the Trust in activities primarily intended to result in the sale of its
shares. The expenses of such activities shall not exceed two-tenths of one
percent (2/10 of 1%) per annum of the Fund's average daily net assets. Payments
under the Plans are reflected as an expense in the Fund's financial statements.
Such expenses do not include interest or other financing charges.
The Trust has entered into a distribution contract on behalf of the Fund
with its principal underwriter, Wright Investors' Service Distributors, Inc.
("WISDI"), a wholly-owned subsidiary of Winthrop, providing for WISDI to act as
a separate distributor of the Fund's shares.
It is intended that the Fund will pay 2/10 of 1% of its average daily net
assets to WISDI for distribution activities on behalf of the Fund in connection
with the sale of its shares. WISDI shall provide on a quarterly basis
documentation concerning the expenses of such activities. Documented expenses of
the Fund shall include compensation paid to and out-of-pocket disbursements of
officers, employees or sales representatives of WISDI, including telephone
costs, the printing of prospectuses and reports for other than existing
shareholders, preparation and distribution of sales literature, and advertising
of any type intended to enhance the sale of shares of the Fund. Subject to the
2/10 of 1% per annum limitation imposed by the Trust's Plan, the Fund may pay
separately for expenses of activities primarily intended to result in the sale
of the Fund's shares. It is contemplated that the payments for distribution
described above will be made directly to WISDI. If the distribution payments to
WISDI exceed its expenses, WISDI may realize a profit from these arrangements.
Peter M. Donovan, President and a Trustee of the Trust and President, Chief
Executive Officer and a Director of Winthrop and Wright, is Vice President,
Treasurer and a Director of WISDI. A. M. Moody, III, Vice President and a
Trustee of the Trust and Senior Vice President of Winthrop and Wright, is
President and a Director of WISDI.
It is the opinion of the Trustees and officers of the Trust that the
following are not expenses primarily intended to result in the sale of shares
issued by any Fund; fees and expenses of registering shares of the Fund under
federal or state laws regulating the sale of securities; fees and expenses of
registering the Trust as a broker-dealer or of registering an agent of the Trust
under federal or state laws regulating the sale of securities; fees of
registering, at the request of the Trust, agents or representatives of a
principal underwriter or distributor of the Fund under federal or state laws
regulating the sale of securities, provided that no sales commission or "load"
is charged on sales of shares of the Fund; and fees and expenses of preparing
and setting in type the Trust's registration statement under the Securities Act
of 1933. Should such expenses be deemed by a court or agency having jurisdiction
to be expenses primarily intended to result in the sale of shares issued by the
Fund, they shall be considered to be expenses contemplated by and included in
the applicable Plan but not subject to the 2/10 of 1% per annum limitation
described above.
Under the Trust's Plan, the President or Vice President of the Trust shall
provide to the Trustees for their review, and the Trustees shall review at least
quarterly, a written report of the amounts expended under the Plan and the
purposes for which such expenditures were made. For the fiscal year ended
December 31, 1995, it is estimated that WISDI spent approximately the following
amounts on behalf of the Wright Managed Investment Funds, including this Fund.
<PAGE>
Wright Investors' Service Disributors, Inc.
Financial Summaries for the Year 1995
Printing Commis-
& Mailing Travel sions & Adminis-
Pro- Pros- & Enter- Service tration &
motional pectuses tainment Fees Other TOTAL
------- ------- ------- ------- ------- -------
$201,231 $71,969 $59,320 $39,975 $63,682 $436,177
For the fiscal year ended December 31, 1995, the Fund paid WISDI
distribution expenses of $436,177 (equivalent to 0.20% of the Fund's average net
assets for such year).
Under its terms the Trust's Plan remains in effect from year to year,
provided such continuance is approved annually by a vote of its Trustees,
including a majority of the Trustees who are not interested persons of the Trust
and who have no direct or indirect financial interest in the operation of the
Plan. The Plan may not be amended to increase materially the amount to be spent
for the services described therein as to the Fund without approval of a majority
of the outstanding voting securities of the Fund and all material amendments of
the Plan must also be approved by the Trustees of the Trust in the manner
described above. The Trust's Plan may be terminated at any time as to the Fund
without payment of any penalty by vote of a majority of the Trustees of the
Trust who are not interested persons of the Trust and who have no direct or
indirect financial interest in the operation of the Plan or by a vote of a
majority of the outstanding voting securities of the Fund. So long as the
Trust's Plan is in effect, the selection and nomination of Trustees who are not
interested persons of the Trust shall be committed to the discretion of the
Trustees who are not such interested persons. The Trustees of the Trust have
determined that in their judgment there is a reasonable likelihood that the Plan
will benefit the Trust and its shareholders.
Performance Information
The average annual total return of the Fund is determined for a particular
period by calculating the actual dollar amount of investment return on a $1,000
investment in the Fund made at the maximum public offering price (i.e. net asset
value) at the beginning of the period, and then calculating the annual
compounded rate of return which would produce that amount. Total return for a
period of one year is equal to the actual return of the Fund during that period.
This calculation assumes that all dividends and distributions are reinvested at
net asset value on the reinvestment dates during the period.
The average annual total return of the Fund for the one and five-year
periods ended December 31, 1995 and the period from inception to December 31,
1995 was as follows:
Inception to Inception
One Year Five Years 12/31/95(1) Date
-------- -------- ---------- --------
13.61% 10.04% 7.42% 9/14/89
(1) If a portion of the Fund's expenses had not been reduced during the
fiscal years ending December 31, 1990 and 1989, the Fund would have had lower
returns.
The Fund's total return may be compared to the Consumer Price Index and
various domestic securities indices. The Fund's total return and comparisons
with these indices may be used in advertisements and in information furnished to
present or prospective shareholders.
From time to time, evaluations of the Fund's performance made by
independent sources may be used in advertisements and in information furnished
to present or prospective shareholders. According to the rankings prepared by
Lipper Analytical Services, Inc., an independent service which monitors the
perfor-
<PAGE>
mance of mutual funds, the Lipper performance analysis includes the
reinvestment of dividends and capital gain distributions, but does not take
sales charges into consideration and is prepared without regard to tax
consequences.
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 97.0%
<S> <C> <C>
AUSTRALIA -- 3.6%
Broken Hill Proprietary Co. ADR..... 17,930 $ 1,013,045
Broken Hill Proprietary Co.......... 41,293 582,776
Coles Myer Ltd ADR................. 62,551 1,618,507
Email Ltd........................... 600,760 1,427,983
F.H. Faulding (U.K.)................ 448,071 1,996,963
Lend Lease Corp. Ltd................ 141,038 2,042,879
-----------
$ 8,682,153
-----------
BELGIUM -- 2.3%
Colruyt SA.......................... 6,700 $ 1,809,888
Delhaize Freres & Cie Le Lion SA.... 41,200 1,707,917
GB Inno - AFV....................... 654 28,000
GB Inno - BM SA..................... 44,850 1,968,950
-----------
$ 5,514,755
-----------
CANADA -- 2.7%
Bombardier Inc. Class B............. 186,000 $ 2,454,828
British Columbia Telecom............ 112,300 2,058,515
Corel Corporation*.................. 139,500 1,813,500
-----------
$ 6,326,843
-----------
DENMARK -- 4.8%
Berendsen Sophus A/S Class A........ 1,228 $ 137,438
Berendsen Sophus A/S Class B........ 16,630 1,868,707
Carlsburg A/S Pfd Class B........... 34,727 1,935,521
Icopal Group........................ 5,400 1,300,971
ISS International Service Sys. A/S.. 54,200 1,218,087
Novo-Nordisk AS..................... 19,000 2,596,187
Radiometer A/S...................... 32,250 2,307,713
-----------
$ 11,364,624
-----------
FRANCE -- 10.0%
Bongrain SA......................... 3,500 $ 1,968,716
Carrefour Supermarche............... 4,200 2,543,068
Castorama Dubois Inv................ 14,300 2,337,311
Comptoirs Modernes SA............... 6,504 2,107,578
Docks De France SA.................. 11,200 1,698,232
Groupe Danone....................... 10,571 1,740,738
L'Air Liquide SA.................... 12,321 2,036,446
LeGrand SA.......................... 12,100 1,864,289
L'Oreal SA.......................... 7,350 1,963,795
LVMH Moet-Hennessy SA ADR.......... 55,220 2,312,338
Pernod Ricard SA.................... 23,280 1,320,390
Synthelabo.......................... 28,900 1,807,005
-----------
$ 23,699,906
-----------
GERMANY -- 3.3%
Bayerische Motoren Werke AG......... 3,109 $ 1,590,752
Beiersdorf AG....................... 2,700 1,888,966
Douglas Holdings AG................. 64,000 2,254,368
Dyckerhoff AG....................... 3,950 846,920
Heidelberger Zement AG ............. 1,980 1,240,515
-----------
$ 7,821,521
-----------
HONG KONG -- 6.7%
China Light & Power Co. Ltd. ADR.... 311,276 $ 1,433,177
Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,641,706
Hang Seng Bank Ltd. ADR............. 267,195 2,393,052
Hong Kong Aircraft Engineering Co... 741,000 1,916,586
Hong Kong & China Gas Co. ADR....... 939,132 1,512,097
Hong Kong Electric Holdings Ltd.ADR 530,520 1,739,310
Johnson Electric Holdings Ltd....... 897,500 1,601,746
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,595,593
Swire Pacific Ltd. ADR.............. 261,400 2,028,464
-----------
$ 15,861,731
-----------
IRELAND -- 1.6%
Fyffes PLC.......................... 922,000 $ 1,591,722
Greencore Group PLC................. 255,000 2,286,734
-----------
$ 3,878,456
-----------
ITALY -- 0.6%
Sirti SPA........................... 241,000 $ 1,354,999
-----------
<PAGE>
JAPAN -- 10.5%
Chudenko Corp....................... 48,300 $ 1,653,598
Daiichi Pharmaceutical Co., Ltd..... 98,000 1,393,230
Ito-Yokado Co., Ltd. ADR............ 8,750 2,153,594
Kurita Water Industries Ltd......... 81,000 2,154,255
Kyodo Printing Co. Ltd.............. 138,000 1,721,663
National House Industrial Co., Ltd.. 90,000 1,645,068
Nintendo Corporation Ltd............ 26,700 2,027,031
Ono Pharmaceutical Co. Ltd.......... 29,000 1,113,443
Santen Pharmaceutical Co., Ltd...... 66,000 1,500,000
Seven Eleven Japan Co., Ltd......... 19,800 1,394,043
Taisho Pharmaceutical Co., Ltd...... 75,000 1,479,691
Takasago Thermal Engineering Co..... 93,000 1,663,927
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,975,242
York-Benimaru Co., Ltd.............. 42,000 1,604,449
Yurtec Corp......................... 82,950 1,452,026
-----------
$ 24,931,260
-----------
MALAYSIA -- 4.7%
Amalgamated Steel Mills Berhad......2,298,000 $ 1,710,131
Genting Berhad...................... 200,000 1,669,489
Guinness Anchor Berhad.............. 988,000 1,851,746
Hong Leong Indus Berhad............. 363,000 1,929,559
Perlis Plantations Berhad........... 532,000 1,665,315
Sime Darby Berhad................... 829,200 2,203,843
-----------
$ 11,030,083
-----------
MEXICO -- 1.8%
Cifra S.A. ADR..................... 895,000 $ 940,735
Kimberly Clark De Mexico ADR........ 64,900 1,962,634
Telefonos de Mexico ADR............ 40,400 1,287,750
-----------
$ 4,191,119
-----------
NETHERLANDS -- 9.8%
CSM N.V............................ 47,095 $ 2,050,028
Elsevier Dutch Certificates......... 159,900 2,127,890
Getronics N.V....................... 48,014 2,239,319
Hagemeyer N.V....................... 37,740 1,966,676
Heineken N.V........................ 13,375 2,367,926
Koninklijke Ahold N.V............... 63,176 2,573,240
Nutricia............................ 29,000 2,340,775
Polygram............................ 28,700 1,520,577
Unilever N.V........................ 12,900 1,808,936
Verenigde Neder. Uitgeversbedrijven. 16,600 2,274,100
Wolters Kluwer N.V.................. 20,400 1,925,701
-----------
$ 23,195,168
-----------
NEW ZEALAND -- 0.8%
Wilson & Horton..................... 320,000 $ 1,913,302
-----------
SINGAPORE -- 2.4%
Asia Pacific Breweries Ltd.......... 272,000 $ 1,615,499
Cycle & Carriage Ltd. Ord........... 199,000 1,983,950
Singapore Press Holdings Ltd........ 115,200 2,036,343
-----------
$ 5,635,792
-----------
SOUTH AFRICA -- 0.9%
South African Breweries Ltd......... 58,500 $ 2,142,299
-----------
SPAIN -- 2.6%
Banco Popular Espanol............... 11,600 $ 2,133,980
Empresa Nac de Electicidad SA....... 40,600 2,293,767
Repsol S.A.......................... 55,740 1,822,093
-----------
$ 6,249,840
-----------
SWEDEN -- 3.6%
Astra AB Class B.................... 58,500 $ 2,317,530
Gambro AB Series B.................. 121,700 2,309,802
Gullspangs Kraft - "B" Free......... 155,000 2,264,734
Hennes & Mauritz AB Class B........ 31,600 1,761,175
-----------
$ 8,653,241
-----------
SWITZERLAND -- 4.7%
Nestle SA ADR....................... 34,600 $ 1,918,459
Roche Holding AG - Genussch......... 270 2,135,798
Sandoz AG........................... 2,800 2,563,218
SMH-Sch. Ges. Fuer AG............... 14,750 1,930,779
SMH-Sch. Ges. Fuer - New AG......... 470 281,132
Societe Generale de Surv. Hold. SA.. 1,175 2,332,582
-----------
$ 11,161,968
-----------
<PAGE>
UNITED KINGDOM -- 19.6%
Allied Colloids Group PLC........... 920,000 $ 1,900,251
BTR*................................ 4,178 4,315
BTR Ltd. PLC........................ 359,908 1,838,903
BTR Ltd.*........................... 3,287 1,047
Cable & Wireless PLC ADR........... 99,700 2,106,163
Christian Salvesen PLC.............. 347,200 1,428,884
Farnell Electronics PLC............. 182,700 2,038,622
Grand Metropolitan PLC ADR......... 55,900 1,607,125
Halma PLC........................... 709,333 1,927,790
Kwik Save Group PLC................. 173,000 1,343,345
LaPorte PLC......................... 167,070 1,738,380
Marks & Spencer PLC................. 60,700 424,202
Marks & Spencer PLC ADR ............ 30,700 1,286,947
Morrison (Wm.) Supermarket.......... 850,000 1,848,070
Nurdin & Peacock PLC................ 624,000 1,477,835
Pearson PLC......................... 207,076 2,005,107
Polypipe PLC........................ 720,000 1,967,962
Powerscreen Int'l................... 433,100 2,602,979
Reckitt & Colman PLC................ 157,176 1,739,171
Sainsbury (J.) PLC.................. 267,292 1,629,285
Scapa Group PLC..................... 561,873 1,937,147
Securicor Group -A-................. 100,000 1,374,405
Seibe PLC........................... 220,724 2,719,994
Smith & Nephew PLC.................. 686,730 1,994,339
Smiths Industries PLC............... 210,100 2,075,174
Tesco PLC........................... 417,060 1,923,652
Weir Group PLC...................... 407,700 1,332,798
Wolseley PLC........................ 317,600 2,224,480
-----------
$ 46,498,372
-----------
TOTAL EQUITY INTERESTS -- 97.0%
(identified cost, $189,163,858) $ 230,107,432
RESERVE FUND -- 2.7%
Face Amount
------------
American Express Corp., 5.65%, 1/02/96
(at amortized cost)...............$6,470,000 6,470,000
-----------
TOTAL INVESTMENTS -- 99.7%
(identified cost, $195,633,858) $236,577,432
OTHER ASSETS,
LESS LIABILITIES -- 0.3% 598,514
-----------
NET ASSETS -- 100% $237,175,946
============
<FN>
* Non-income-producing security.
ADR: American Depository Receipts
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $195,633,858
Unrealized appreciation................ 40,943,574
------------
Total value (Note 1A)................ $236,577,432
Cash..................................... 2,628
Dividends and interest receivable........ 436,970
Receivable for refundable foreign taxes
withheld............................... 373,785
Receivable for fund shares sold.......... 126,823
------------
Total Assets........................... $237,517,638
------------
LIABILITIES:
Payable for fund shares reacquired....... $ 302,551
Trustees fees payable.................... 370
Custodian fee payable (Note 3)........... 25,706
Accrued expenses and other liabilities... 13,065
------------
Total Liabilities......................$ 341,692
------------
NET ASSETS.................................. $237,175,946
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost of
shares reacquired........................ $198,077,233
Accumulated undistributed net realized loss
on investments and foreign currency
(computed on the basis of identified cost) (3,217,931)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost) 40,958,703
Undistributed net investment income......... 1,357,941
------------
Net assets applicable to outstanding shares $237,175,946
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 16,057,236
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.77
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 5,476,637
Interest............................... 215,791
Less: Foreign taxes................... (707,978)
------------
Total Income......................... $ 4,984,450
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,682,897
Administrator fee (Note 2)............. 270,853
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,088
Custodian fee (Note 2)................. 306,333
Transfer and dividend disbursing agent fees 21,522
Shareholder communication expense...... 23,696
Distribution expenses (Note 3)......... 436,177
Audit services......................... 37,000
Legal services......................... 1,445
Registration costs..................... 17,063
Printing............................... 4,395
Interest expense....................... 2,878
Miscellaneous.......................... 10,316
------------
Total Expenses....................... $ 2,816,663
------------
Net Investment Income.............. $ 2,167,787
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized loss on investment and foreign
currency transactions (identified
cost basis) .......................... $ (650,735)
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 25,147,505
------------
Net realized and unrealized gain on
investments and foreign currency... $ 24,496,770
------------
Net increase in net assets
from operations.................... $ 26,664,557
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
=======================================================================================================================
Year Ended
December 31,
----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................................ $ 2,167,787 $ 1,821,338
Net realized gain (loss) on investment and foreign currency transactions..... (650,735) 238,478
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 25,147,505 (7,495,702)
------------ ------------
Increase (decrease) in net assets from operations.................... $ 26,664,557 $ (5,435,886)
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1D).................................. $ 182,554 $ 655,170
------------ ------------
Distributions to shareholders from net investment income....................... $ (1,602,294) $ (1,467,856)
------------ ------------
Net increase from fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ 11,699,493 $ 106,409,645
------------ ------------
Net increase in net assets............................................ $ 36,944,310 $ 100,161,073
NET ASSETS:
At beginning of year........................................................... 200,231,636 100,070,563
------------ ------------
At end of year................................................................. $ 237,175,946 $ 200,231,636
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,357,941 $ 1,579,133
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
Wright International Blue Chip Equities Fund (WIBC) is a diversified series
of The Wright Managed Equity Trust (the "Trust"). The Trust is registered under
the Investment Company Act of 1940, as amended, as an open-end, management
investment company. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities for which closing sale prices are not available are
valued at the mean between the latest bid and asked prices. Short-term
obligations maturing in 60 days or less are valued at amortized cost, which
approximates value. Securities for which market quotations are unavailable
are appraised at their fair value as determined in good faith by or at the
direction of the Trustees.
B. Foreign Currency Translation -- Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Federal Taxes -- WIBC's policy is to comply with the provisions of the
Internal Revenue Code (the Code) applicable to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. Withholding
taxes on foreign dividends have been provided for in accordance with the
Trust's understanding of the applicable country's tax rules and rates.
At December 31, 1995, WIBC, for federal income tax purposes, had a capital
loss carryover of $3,217,931, which will reduce taxable income arising from
future net realized gain on investments, if any, to the extent permitted
by the Code, and thus will reduce the amount of the distribution to
shareholders which would otherwise be necessary to relieve WIBC of any
liability for federal income or excise tax. Pursuant to the Code, such
capital loss carryover will expire as follows:
1999 2000 2001 2003
-----------------------------------------------------
$924,334 $1,404,904 $250,866 $637,827
-----------------------------------------------------
D. Equalization -- WIBC follows the accounting practice known as equalization
by which a portion of the proceeds from sales and costs of reacquisitions
of Fund shares, equivalent on a per-share basis to the amount of
undistributed net investment income on the date of the transaction, is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales or
reacquisitions of Fund shares.
E. Distributions -- The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gain. During the year ended
December 31, 1995, the following amounts were reclassified due to the
differences between book and tax accounting created primarily by the
utilization of redemption distributions for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
Accumulated Undistributed Undistributed
Paid-in Net Realized Loss on Investment Net Investment
Capital and Foreign Currency Transactions Income
----------------------------------------------------------------
$951,294 $17,945 $(969,239)
----------------------------------------------------------------
These changes had no effect on the net assets per share.
<PAGE>
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. However, if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as the Fund is informed of the ex-dividend date. Interest income
is recorded on the accrual basis.
G. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the year ended December 31, 1995, the effective annual rate was 0.77% for
WIBC. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1995, the effective annual rate was 0.12% for WIBC. The custodian fee was paid
to Investors Bank & Trust Company (IBT) for its services as custodian of the
Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant
to the custodian agreement, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Trust maintains with
IBT. All significant credits are reported as a reduction of expenses in the
Statement of Operations. For the year ended December 31, 1995, there were no
such reported amounts. Certain of the Trustees and officers of the Trust are
Directors/Trustees and/or officers of the above organizations. Except as to
Trustees of the Trust who are not affiliated with Wright or Eaton Vance,
Trustees and officers receive remuneration for their services to the Trust out
of the fees paid to Wright and Eaton Vance.
See Note 3.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that WIBC will
pay the Principal Underwriter, Wright Investors' Service Distributors, Inc., a
subsidiary of Wright, an annual rate of 2/10 of 1% of WIBC's average daily net
assets for activities primarily intended to result in the sale of WIBC's shares.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in WIBC shares were as follows:
<TABLE>
Year Ended December 31,
------------------------------------------------------------
1995 1994
---------------------------- ---------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold ................................................. 4,605,546 $ 64,343,250 12,245,362 $165,447,724
Issued to shareholders in payment of distributions
declared.............................................. 78,962 1,136,990 88,270 1,142,033
Reacquired............................................. (3,919,612) (53,780,747) (4,503,339) (60,180,112)
----------- ------------ ------------ -------------
Net increase..................................... 764,896 $ 11,699,493 7,830,293 $106,409,645
============ ============= ============= =============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations, for
the year ended December 31, 1995, were as follows:
- ------------------------------------------------------
Purchases............................ $32,858,249
=============
Sales................................ $25,390,082
=============
- ------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
- ---------------------------------------------------------
Aggregate cost....................... $195,633,858
=============
Gross unrealized appreciation........ $ 48,243,565
Gross unrealized depreciation........ (7,299,991)
------------
Net unrealized appreciation.......... $ 40,943,574
=============
- --------------------------------------------------------
(7) FINANCIAL INSTRUMENTS
WIBC may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. WIBC holds no such instruments at
December 31, 1995.
(8) LINE OF CREDIT
WIBC participates with other funds managed by Wright in a line of credit
with a bank which allows the Funds to borrow up to $20,000,000 collectively. The
line of credit consists of a $10,000,000 committed facility and a $10,000,000
uncommitted facility. Interest is charged to each fund based on its borrowings,
at a rate equal to the bank's base rate. In addition, the funds pay a prorated
commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of
any borrowing. WIBC did not have any significant borrowings under the line of
credit during the year ended December 31, 1995.
(9) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of WIBC, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets, while
growing in volume and sophistication, are generally not as developed as those in
the United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of WIBC's assets. WIBC may be unable to sell securities where the
registration process is incomplete and may experience delays in receipt of
dividends.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wright International Blue Chip Equities Fund of
The Wright Managed Equity Trust as of December 31, 1995 and the related
statement of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1995 and 1994, and the financial
highlights (see page 5 of the Prospectus) for each of the years in the
seven-year period ended December 31, 1995. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Wright International
Blue Chip Equities Fund of The Wright Managed Equity Trust as of December 31,
1995, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
APPENDIX
- ------------------------
Wright Quality Ratings
Wright Quality Ratings provide the means by which the fundamental criteria
for the measurement of quality of an issuer's securities can be objectively
evaluated.
Each rating is based on 32 individual measures of quality grouped into four
components: (1) Investment Acceptance, (2) Financial Strength, (3) Profitability
and Stability, and (4) Growth. The total rating is three letters and a numeral.
The three letters measure (1) Investment Acceptance, (2) Financial Strength, and
(3) Profitability and Stability. Each letter reflects a composite measurement of
eight individual standards which are summarized as A: Outstanding, B: Excellent,
C: Good, D: Fair, L: Limited, and N: Not Rated. The numeral rating reflects
Growth and is a composite of eight individual standards ranging from 0 to 20.
Equity Securities
Investment Acceptance reflects the acceptability of a security by and its
marketability among investors, and the adequacy of the floating supply of its
common shares for the investment of substantial funds.
Financial Strength represents the amount, adequacy and liquidity of the
corporation's resources in relation to current and potential requirements. Its
principal components are aggregate equity and total capital, the ratio of
invested equity capital to debt, the adequacy of net working capital, its fixed
charges coverage ratio and other appropriate criteria.
Profitability and Stability measures the record of a corporation's
management in terms of (1) the rate and consistency of the net return on
shareholders' equity capital investment at corporate book value, and (2) the
profits or losses of the corporation during generally adverse economic periods,
including its ability to withstand adverse financial developments.
Growth per common share of the corporation's equity capital, earnings, and
dividends -- rather than the corporation's overall growth of dollar sales and
income.
These ratings are determined by specific quantitative formulae. A
distinguishing characteristic of these ratings is that The Wright Investment
Committee must review and accept each rating. The Committee may reduce a
computed rating of any company, but may not increase it.
Debt Securities
Wright ratings for commercial paper, corporate bonds and bank certificates
of deposit consist of the two central positions of the four position
alphanumeric corporate equity rating. The two central positions represent those
factors which are most applicable to fixed income and reserve investments. The
first, Financial Strength, represents the amount, the adequacy and the liquidity
of the corporation's resources in relation to current and potential
requirements. Its principal components are aggregate equity and total capital,
the ratios of (a) invested equity capital, and (b) long-term debt, total of
corporate capital, the adequacy of net working capital, fixed-charges coverage
ratio and other appropriate criteria. The second letter represents Profitability
and Stability and measures the record of a corporation's management in terms of:
(a) the rate and consistency of the net return on shareholders' equity capital
investment at corporate book value, and (b) the profits and losses of the
corporation during generally adverse economic periods, and its ability to
withstand adverse financial developments.
<PAGE>
The first letter rating of the Wright four-part alphanumeric corporate
rating is not included in the ratings of fixed income securities since it
primarily reflects the adequacy of the floating supply of the company's common
shares for the investment of substantial funds. The numeric growth rating is not
included because this element is identified only with equity investments.
A-1 and P-1 Commercial Paper Ratings
by Standard & Poor's and Moody's
A Standard & Poor's Commercial Paper Rating is a current assessment of the
likelihood of timely payment of debt having an original maturity of no more than
365 days.
`A': Issues assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with the numbers 1, 2, and 3 to indicate the relative degree of safety. The
`A-1' designation indicates that the degree of safety regarding timely payment
is either overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics will be denoted with a plus (+) sign
designation.
The commercial paper rating is not a recommendation to purchase or sell a
security. The ratings are based on current information furnished to Standard &
Poor's by the issuer or obtained from other sources it considers reliable. The
ratings may be changed, suspended or withdrawn as a result of changes in or
unavailability of such information.
Issuers (or related supporting institutions) rated P-1 by Moody's have a
superior capacity for repayment of short-term promissory obligations. P-1
repayment capacity will normally be evidenced by the following characteristics:
-- Leading market positions in well-established industries.
-- High rates of return on funds employed.
-- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
-- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
-- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
<PAGE>
P R O S P E C T U S MAY 1, 1996
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
The Wright Managed Blue Chip Investment Funds (the "Funds") consist of nine
series or Funds from The Wright Managed Equity Trust and The Wright Managed
Income Trust (the "Trusts"). Each Fund has distinct investment objectives and
policies which are discussed starting on page 1. The nine Funds are:
WRIGHT SELECTED BLUE CHIP EQUITIES FUND WRIGHT U.S. TREASURY FUND
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND WRIGHT U.S. TREASURY NEAR TERM FUND
WRIGHT QUALITY CORE EQUITIES FUND WRIGHT TOTAL RETURN BOND FUND
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND WRIGHT CURRENT INCOME FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND
This combined Prospectus is designed to provide you with information you
should know before investing. Please retain this document for future reference.
A combined Statement of Additional Information dated May 1, 1996, for the Funds
has been filed with the Securities and Exchange Commission and is incorporated
herein by reference. This Statement is available without charge from Wright
Investors' Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport,
Connecticut 06604 (Telephone: 800-888-9471). THE PROSPECTUSES OF THE FUNDS ARE
COMBINED IN THIS PROSPECTUS. EACH FUND OFFERS ONLY ITS OWN SHARES, YET IT IS
POSSIBLE THAT A FUND MIGHT BECOME LIABLE FOR A MISSTATEMENT IN THE PROSPECTUS OF
ANOTHER FUND. THE TRUSTEES OF EACH TRUST HAVE CONSIDERED THIS IN APPROVING THE
USE OF A COMBINED PROSPECTUS.
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR
GUARANTEED BY ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE NOT
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. SHARES OF THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND THE POSSIBLE LOSS OF SOME
OR ALL OF THE PRINCIPAL INVESTMENT. SHARES OF WRIGHT U.S. TREASURY MONEY MARKET
FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE IS NO
ASSURANCE THAT IT WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE.
TABLE OF CONTENTS
PAGE
Shareholder and Fund Expenses..................... ii
Financial Highlights.............................. iv
The Funds and their Investment Objectives
and Policies ................................... 1
The Wright Managed Equity Trust
Wright Selected Blue Chip Equities Fund (WBC)... 1
Wright Junior Blue Chip Equities Fund (WJBC).... 2
Wright Quality Core Equities Fund (WQC)......... 2
Wright International Blue Chip Equities
Fund( WIBC).................................... 2
The Wright Managed Income Trust
Wright U.S. Treasury Fund (WUSTB)............... 3
Wright U.S. Treasury Near Term Fund (WNTB)...... 3
Wright Total Return Bond Fund (WTRB)............ 3
Wright Current Income Fund (WCIF)............... 3
Wright U.S. Treasury Money Market Fund (WTMM)... 4
Other Investment Policies......................... 4
The Investment Adviser............................ 7
The Administrator................................. 9
Distribution Expenses............................. 9
How the Funds Value their Shares.................. 10
How to Buy Shares................................. 11
How Shareholder Accounts are Maintained........... 12
Distributions by the Funds........................ 13
Taxes............................................. 13
How to Exchange Shares............................ 15
How to Redeem or Sell Shares...................... 16
Performance Information........................... 17
Other Information................................. 18
Tax-Sheltered Retirement Plans.................... 18
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<PAGE>
SHAREHOLDER AND FUND EXPENSES
The following table of fees and expenses is provided to assist investors in
understanding the various costs and expenses which may be borne directly or
indirectly by an investment in each Fund. The percentages shown below
representing total operating expenses are based on actual amounts incurred for
the fiscal year ended December 31, 1995.
<TABLE>
Wright Wright Wright Wright
Selected Blue Chip Junior Blue Chip Quality Core International Blue Chip
Equities Fund (WBC) Equities Fund (WJBC) Equities Fund (WQC) Equities Fund (WIBC)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES none none none none
ANNUALIZED FUND OPERATING EXPENSES
(as a percentage of average net assets)
Investment Adviser Fee 0.62% 0.55% 0.45% 0.77%
Rule 12b-1 Distribution Expense
(after expense reduction) (2) 0.20% 0.09% 0.18% 0.20%
Other Expenses (including administration fees) (1) 0.22% 0.53% 0.44% 0.32%
----- ----- ----- -----
TOTAL OPERATING EXPENSES (after reductions)(2) 1.04% 1.17% 1.07% 1.29%
- -----------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Administration fees for WJBC and WQC were 0.20%, for WBC 0.13% and for WIBC
0.12%; (2) Absent a fee reduction, expenses of WJBC and WQC would have been the
following as a percentage of average net assets: WJBC distribution expenses
would have been 0.20% and total operating expenses would have been 1.28% and WQC
distribution expenses would have been 0.20% and total operating expenses would
have been 1.09%.These fee reductions will continue during 1996 to the extent
necessary to keep from exceeding the total operating expenses (without regard to
custodian fee credits) of WJBC and WQC from exceeding 1.15% and 1.05%,
respectively. In addition, during the year ended December 31, 1995, custodian
fees were reduced by credits resulting from cash balances maintained with
Investors Bank & Trust Company. If these credits were reflected in the above
table, the Total Operating Expenses shown above would have been 1.14% for WJBC
and 1.05% for WQC.
</FN>
</TABLE>
<TABLE>
Wright Wright Wright Wright Wright
U.S. Treasury U.S. Treasury Total Return Current U.S. Treasury
Fund Near Term Fund Bond Fund Income Fund Money Market Fund
(WUSTB) (WNTB) (WTRB) (WCIF) (WTMM)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES None None None None None
ANNUALIZED FUND OPERATING EXPENSES
after expense allocations and fee reductions
(as a percentage of average net assets)
Investment Adviser Fee (after fee reduction) 0.29% 0.43% 0.41% 0.40% 0.16%
Rule 12b-1 Distribution Expense
(after expense reduction) 0.00% 0.20% 0.20% 0.20% None
Other Expenses (including administration fees)(1) 0.64% 0.16% 0.20% 0.27% 0.30%
----- ----- ----- ----- -----
TOTAL OPERATING EXPENSES (after reductions)(2 )0.93% 0.79% 0.81% 0.87% 0.46%
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Administration fees were as follows: 0.10% for WUSTB and WCIF; 0.07% for
WNTB and WTMM; and 0.09% for WTRB; (2) If there had been no reduction of
management or distribution fees for WUSTB, WUSTB's distribution expense and
total operating expenses as a percentage of net assets would have been: 0.20%
and 1.24%, respectively. If no advisory fee reduction were made, the annual
operating expenses for WTMM as a percentage of net assets would have been:
Investment Adviser Fee - 0.35%, Other Expenses - 0.30% and Total Operating
Expenses - 0.65%. These fee reductions will continue in effect to the extent
necessary to keep the total operating expenses (without regard to custodian fee
credits) of WUSTB and WTMM from exceeding 0.90% and 0.45%, respectively. In
addition, during the year ended December 31, 1995, custodian fees were reduced
by credits resulting from cash balances maintained with Investors Bank & Trust
Company. If these credits were reflected in the above table, the Total Operating
Expenses shown above would have been 0.90% for WUSTB, 0.78% for WNTB and 0.45%
for WTMM.
</FN>
</TABLE>
<PAGE>
EXAMPLE OF FUND EXPENSES
The following is an illustration of the total transaction and operating
expenses that an investor in each Fund would bear over different periods of
time, assuming an investment of $1,000, a 5% annual return on the investment and
redemption at the end of each period:
<TABLE>
Wright Wright Wright Wright
Selected Blue Chip Junior Blue Chip Quality Core International Blue Chip
Equities Fund Equities Fund Equities Fund Equities Fund
(WBC) (WJBC) (WQC) (WIBC)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year $ 11 $ 12 $ 11 $ 13
3 Years 33 37 34 41
5 Years 57 64 59 71
10 Years 127 142 131 156
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
Wright Wright Wright Wright Wright
U.S. Treasury U.S. Treasury Total Return Current U.S. Treasury
Fund Near Term Fund) Bond Fund Income Fund Money Market Fund
(WUSTB) (WNTB) (WTRB) (WCIF) (WTMM)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year $ 9 $ 8 $ 8 $ 9 $ 5
3 Years 30 25 26 28 15
5 Years 51 44 45 48 26
10 Years 114 98 100 107 58
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. Federal
regulations require the Example to assume a 5% annual return, but actual return
will vary.
A Fund's payment of a distribution fee may result in a long-term
shareholder indirectly paying more than the economic equivalent of the maximum
initial sales charge permitted under the Rules of Fair Practice of the National
Association of Securities Dealers, Inc. Wright U.S. Treasury Money Market Fund
does not pay a distribution fee.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information should be read in conjunction with the audited
financial statements included in the Funds' annual reports to shareholders which
are incorporated by reference into the Statement of Additional Information in
reliance upon the report of Deloitte & Touche LLP, independent certified public
accountants, as experts in accounting and auditing. Further information
regarding the performance of a Fund is contained in its annual report to
shareholders which may be obtained without charge by contacting the Funds'
Principal Underwriter, Wright Investors' Service Distributors, Inc. at (800)
888-9471.
<TABLE>
THE WRIGHT MANAGED EQUITY TRUST
Year Ended December 31,
--------------------------------------------------------------------------------------
WRIGHT SELECTED
BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $13.850 $ 14.920 $ 14.790 $17.180 $13.840 $ 15.370 $ 13.760 $12.120 $14.040 $13.490
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)......... $0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267 $ 0.323 $ 0.368 $ 0.315 $ 0.292 $ 0.287
Net realized and unrealized
gain (loss) on investments...... 3.904 (0.763) 0.104 0.498 4.553 (0.843) 2.922 2.250 (0.557) 1.553
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations........... $ 4.130 $ (0.530)$ 0.300 $ 0.720 $ 4.820 $ (0.520)$ 3.290 $ 2.565 $(0.265) $ 1.840
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.200)$ (0.180)$(0.170) $ (0.200)$(0.250)$ (0.320)$(0.310) $(0.275)$(0.340) $(0.310)
From net realized gain on
investments .................... (0.840) (0.360) -- (2.910) (1.230) (0.690) (1.370) (0.650) (1.315) (0.980)
In excess of net realized gain on
investments(3).................. (0.110) -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(1.150)$(0.540) $(0.170) $ (3.110)$(1.480) $(1.010)$(1.680) $(0.925)$(1.655)$(1.290)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $16.830 $ 13.850 $ 14.920 $14.790 $17.180 $ 13.840 $ 15.370 $13.760 $12.120 $14.040
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(2).................... 30.34% (3.52%) 2.06% 4.71% 35.98% (3.30%) 24.57% 21.31% (1.83%) 14.18%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted)................... $217,588 $186,016 $175,481 $152,997 $167,900 $108,571 $120,345 $114,042 $ 99,200 $92,908
Ratio of expenses to average
net assets .................... 1.04% 1.03% 1.03% 1.02% 1.08% 1.12% 1.11% 1.10% 1.03% 0.98%
Ratio of net investment income to
average net assets.............. 1.44% 1.57% 1.28% 1.34% 1.67% 2.28% 2.38% 2.29% 1.92% 1.96%
Portfolio Turnover Rate 44% 72% 28% 77% 72% 83% 20% 29% 30% 40%
<FN>
(1) During each of the years ended December 31, 1987 and 1986, the operating
expenses of the Fund were reduced either by a reduction of the investment
adviser fee, administration fee, distribution fee, or through the allocation
of expenses to the Adviser, or a combination of these. Had such actions not
been undertaken, the net investment income per share and the ratios would
have been as follows:
Net investment income per share.... $ 0.279 $ 0.278
======= =======
Ratios (As a percentage of average net assets):
Expenses......................... 1.09% 1.02%
======= =======
Net investment income............ 1.86% 1.92%
======= =======
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(3) The Fund has followed the Statement of Position (SOP) 93-2:Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies. The SOP requires
that differences in the recognition or classification of income between the
financial statements and tax earnings and profits that result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
---------------------------------------------------------------------------------------
WRIGHT JUNIOR
BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $11.000 $ 11.950 $ 11.690 $14.720 $11.500 $ 13.020 $ 12.450 $11.030 $12.730 $12.380
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income(1)......... $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072 $ 0.111 $ 0.177 $ 0.197 $ 0.131 $ 0.149
Net realized and unrealized gain (loss) on
investments..................... 1.977 (0.431) 0.809 0.315 4.118 (1.491) 1.723 1.478 (0.671) 0.541
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 2.097 $ (0.330)$ 0.910 $0.360 $ 4.190 $ (1.380) $ 1.900 $ 1.675 $(0.540) $ 0.690
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.100) $ (0.100)$ (0.060) $(0.030)$(0.070)$ (0.140) $ (0.150) $(0.175)$(0.150)$(0.160)
From net realized gain on
investments..................... (1.030) (0.520) (0.590) (3.360) (0.900) -- (1.180) (0.080) (1.010) (0.180)
In excess of net realized gain
on investments(4)............... (1.117) -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(2.247) $(0.620) $(0.650) $(3.390)$(0.970)$ (0.140) $(1.330) $(0.255)$(1.160)$(0.340)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $10.850 $ 11.000 $ 11.950 $11.690 $14.720 $ 11.500 $ 13.020 $12.450 $11.030 $12.730
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(3).................... 20.51% (2.75%) 7.93% 3.28% 36.98% (10.61%) 15.61% 15.21% (3.58%) 5.62%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted)................... $25,993 $ 37,124 $ 68,226 $ 64,635 $120,911$ 63,385 $ 98,593 $121,644 $95,808 $74,113
Ratio of expenses to average
net assets ..................... 1.17%(2) 1.11% 1.09% 1.07% 1.10% 1.14% 1.10% 1.08% 1.03% 1.05%
Ratio of net investment income to
average net assets.............. 0.89% 0.91% 0.86% 0.31% 0.52% 0.95% 1.34% 1.61% 0.96% 1.11%
Portfolio Turnover Rate............ 40% 36% 38% 80% 60% 75% 15% 38% 58% 20%
<FN>
(1) During the year ended December 31, 1995, the Principal Underwriter reduced
its fee and during the year ended December 31, 1987, the Administrator
reduced its fee. Had such actions not been undertaken, net investment income
per share and the ratios would have been as follows:
1995 1987
---- ----
Net investment income per share.. $ 0.105 $ 0.118
======== ========
Ratios (As a percentage of average net assets):
Expenses........................ 1.28% 1.08%
======== ========
Net investment income........... 0.78% 0.91%
======== ========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning
in 1995. If these credits were considered, the ratio of net expenses to
average daily net assets would have been reduced to 1.14%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) The Fund has followed the Statement of Position (SOP) 93-2:Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies. The SOP requires
that differences in the recognition or classification of income between the
financial statements and tax earnings and profits that result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
--------------------------------------------------------------------------------------
WRIGHT QUALITY CORE
EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $11.390 $ 12.720 $ 13.380 $14.730 $10.760 $ 11.290 $ 10.590 $ 9.710 $12.810 $11.300
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income(1)......... $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175 $ 0.192 $ 0.207 $ 0.211 $ 0.233 $ 0.232
Net realized and unrealized gain
(loss) on investments........... 3.107 (0.295) (0.046) 0.951 3.985 (0.522) 2.163 1.394 (0.303) 1.658
------- ------- ------- ------- - ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 3.260 $ (0.115)$ 0.130 $1.130 $ 4.160 $ (0.330) $ 2.370 $ 1.605 $(0.070)$ 1.890
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.160)$ (0.160)$ (0.160) $(0.160)$ (0.190)$(0.200) $(0.220) $(0.185) $(0.265)$(0.240)
From net realized gain on
investments.................... (1.840) (1.055) (0.625) (2.320) -- -- (1.450) (0.540) (2.765) (0.140)
In excess of net realized gains(4) -- -- (0.005) -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(2.000)$(1.215) $(0.790) $(2.480)$ (0.190)$(0.200) $(1.670) $(0.725) $(3.030)$(0.380)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $12.650 $ 11.390 $ 12.720 $13.380 $14.730 $ 10.760 $ 11.290 $10.590 $ 9.710 $12.810
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return....................... 28.98% (0.70%) 1.00% 8.02% 38.90% (2.89%) 23.02% 16.66% 1.01% 16.90%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted)................... $49,134 $ 51,085 $ 88,349 $ 81,674 $80,065 $ 44,293 $ 50,193 $ 60,989 $ 60,579 $ 81,939
Ratio of expenses to average
net assets...................... 1.07%(2) 0.99% 0.97% 1.01% 1.03% 1.07% 1.14% 1.06% 0.96% 1.03%
Ratio of net investment income to
average net assets.............. 1.19% 1.46% 1.37% 1.20% 1.34% 1.80% 1.76% 1.97% 1.61% 1.79%
Portfolio Turnover Rate............ 83% 55% 53% 70% 9% 18% 12% 14% 34% 17%
<FN>
(1) The Principal Underwriter made a reduction of its fees during the years
ended December 31, 1995 and 1990. During each of the years ended December
31, 1987, 1988 and 1989, the operating expenses of the Fund were reduced
either by a reduction of the investment adviser fee, administrator fee,
distribution fee, or a reduction of a combination of these fees. Had such
actions not been undertaken, the net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
--------------------------------------------
1995 1990 1989 1988 1987
---- ---- ---- ---- ----
Net investment income per share............. $ 0.150 $ 0.183 $ 0.206 $ 0.208 $ 0.222
======= ======= ======= ======= =======
Ratios (As a percentage of average net assets):
Expenses................................. 1.09% 1.15% 1.15% 1.08% 1.00%
======= ======= ======= ======= =======
Net investment income.................... 1.17% 1.72% 1.75% 1.95% 1.57%
======= ======= ======= ======= =======
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning
in 1995. If these credits were considered, the ratio of net expenses to
average daily net assets would have been reduced to 1.05%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) The Fund has followed the Statement of Position (SOP) 93-2:Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies. The SOP requires
that differences in the recognition or classification of income between the
financial statements and tax earnings and profits that result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
------------------------------------------------------------------
WRIGHT INTERNATIONAL
BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989(2)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 13.090 $13.410 $10.520 $ 11.040 $ 9.520 $10.400 $10.000
--------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115 $ 0.164 $ 0.092
Net realized and unrealized gain (loss) on
investments..................... 1.638 (0.347) 2.853 (0.524) 1.515 (0.874) 0.353
------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 1.780 $(0.220) $ 2.960 $ (0.430)$ 1.630 $(0.710) $ 0.445
------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $ (0.100)$(0.100) $(0.070)$ (0.090)$ (0.110)$(0.170) $(0.045)
-------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $ 14.770 $13.090 $13.410 $ 10.520 $ 11.040 $ 9.520 $10.400
======= ======= ======= ======= ======= ======= =======
Total Return(3).................... 13.61% (1.64%) 28.22% (3.94%) 17.21% (6.92%) 4.46%(4)
Ratios/Supplemental Data
Net assets, end of year (000 omitted) $237,176 $200,232 $100,071 $74,409 $51,802 $18,842 $ 14,363
Ratio of expenses to average net assets 1.29% 1.31% 1.46% 1.51% 1.67% 1.65% 0.59%(4)
Ratio of net investment income to
average net assets.............. 0.99% 1.00% 0.67% 0.81% 1.12% 1.66% 3.28%(4)
Portfolio Turnover Rate 12% 12% 30% 15% 23% 13% 0%
<FN>
(1) During each of the two years in the period ended December 31, 1990, the
operating expenses of the Fund were reduced either by a reduction of the
investment adviser fee, administrator fee, or distribution fee or a
reduction of a combination of these fees. Had such actions not been
undertaken, the net investment income per share and the annualized ratios
would have been as follows:
Year Ended December 31,
--------------------
1990 1989(2)
Net investment income per share.... $ 0.092 $ 0.065
======= =======
Ratios (As a percentage of average net assets):
Expenses......................... 2.38% 1.55%(4)
======= =======
Net investment income............ 0.93% 2.33%(4)
======= =======
(2) For the period from September 14, 1989 (commencement of operations), to
December 31, 1989.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Annualized.
</FN>
</TABLE>
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
<TABLE>
Year Ended December 31,
----------------------------------------------------------------------------------------
WRIGHT
U.S. TREASURY FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $12.250 $ 14.360 $ 13.190 $13.220 $12.100 $ 12.300 $ 11.440 $11.540 $13.070 $11.800
------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902 $ 0.912 $ 0.937 $ 0.950 $ 0.978 $ 1.012
Net realized and unrealized
gain (loss) on investments..... 2.458 (2.110) 1.170 (0.030) 1.120 (0.202) 0.859 (0.100) (1.398) 1.258
------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Total income (loss) from investment
operations..................... $ 3.338 $ (1.230)$ 2.062 $ 0.881 $ 2.022 $ 0.710 $ 1.796 $ 0.850 $(0.420) $ 2.270
------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income....... $(0.878)$(0.880) $ (0.892)$(0.911) $(0.902)$ (0.910 )$ (0.936)$(0.950)$(1.100) $(1.000)
From net realized gain on investment
transactions.................... -- -- -- -- -- -- -- -- (0.010) --
------ --------- -------- -------- ------- -------- -------- -------- -------- --------
Total distributions........... $(0.878)$(0.880) $ (0.892)$(0.911) $(0.902)$(0.910) $(0.936)$(0.950) $(1.110)$(1.000)
------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Net asset value, end of year....... $14.710 $ 12.250 $ 14.360 $13.190 $13.220 $ 12.100 $ 12.300 $11.440 $11.540 $13.070
======= ======== ======== ======== ======= ======= ========= ======= ======== =========
Total Return(2).................... 28.18% (8.66%) 15.90% 7.07% 17.56% 6.33% 16.26% 7.60% (2.96%) 19.91%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................$ 15,156 $ 16,658 $ 29,846 $29,703 $33,857 $ 37,293 $49,445 $36,037 $41,337 $46,602
Ratio of net expenses to average
net assets...................... 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.7% 0.9%
Ratio of net investment income to
average net assets.............. 6.6% 6.9% 6.3% 7.1% 7.4% 8.1% 7.9% 8.3% 8.1% 8.0%
Portfolio Turnover Rate.......... 8% 1% 12% 15% 15% 32% 15% 14% 68% 7%
<FN>
(1) During the year ended December 31, 1987, the operating expenses of the Fund
were reduced either by a reduction of the investment adviser fee,
administrator fee, or distribution fee or through certain expense
allocations to the Adviser or a combination of these. During each of the
four years ended December 31, 1995, the operating expenses of the Fund were
reduced either by an allocation of expenses to the Adviser or a reduction in
distribution fee, or a combination of these. Had such actions not been
undertaken, the net investment income per share and the ratios would have
been as follows:
Year Ended December 31,
--------------------------------------------
1995 1994 1993 1992 1987
Net investment income per share.... $ 0.827 $ 0.854 $ 0.878 $ 0.898 $ 0.960
======== ======== ================ ========
Ratios (As a percentage of average net assets):
Expenses........................ 1.2% 1.1% 1.0% 1.0% 0.8%
======== ======== ================ ========
Net investment income........... 6.2% 6.7% 6.2% 7.0% 8.0%
======== ======== ================ ========
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
----------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY
NEAR TERM FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 9.920 $ 10.840 $ 10.660 $10.750 $10.260 $ 10.330 $ 10.160 $10.500 $11.400 $11.020
-------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795 $ 0.871 $ 0.928 $ 0.928 $ 0.969 $ 0.999
Net realized and unrealized gain
(loss) on investments........... 0.524 (0.920) 0.180 (0.090) 0.489 (0.068) 0.160 (0.340) (0.739) 0.391
-------- --------- -------- ------- ------ --------- -------- -------- -------- --------
Total income (loss) from investment
operations..................... $ 1.155 $ (0.332)$ 0.835 $ 0.649 $ 1.284 $ 0.803 $ 1.088 $ 0.588 $ 0.230 $1.390
-------- ---------- ------ -------- ------ --------- -------- ------- -------- --------
Less Distributions:
From net investment income....... $ (0.625)$ (0.588)$ (0.655) $(0.739)$ (0.794)$(0.873)$ (0.918) $(0.928)$(1.120) $(0.990)
From net realized gain on investment
transactions.................... -- -- -- -- -- -- -- -- (0.010) (0.020)
------- --------- -------- -------- -------- ------- -------- -------- -------- --------
Total distributions........... $ (0.625)$ (0.588)$(0.655) $(0.739)$ (0.794)$(0.873) (0.918) $(0.928)$(1.130) $(1.010)
-------- -------- -------- -------- -------- ------- -------- -------- -------- --------
Net asset value, end of year....... $ 10.450 $ 9.920 $ 10.840 $10.660 $10.750 $ 10.260 $ 10.330 $10.160 $10.500 $11.400
======= ======== ======== ======== ======== ======= ======= ======== ======= ========
Total Return(2).................... 11.93% (3.10%) 7.95% 6.26% 13.08% 8.23% 11.17% 5.75% 2.34% 13.12%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)................... $143,600 $212,122 $380,917 $371,074 $232,407 $253,537 $237,558 $199,200 $192,947 $ 152,809
Ratio of net expenses to average
net assets...................... 0.8% 0.7% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.6% 0.8%
Ratio of net investment income to
average net assets.............. 6.1% 5.7% 6.0% 6.9% 7.7% 8.6% 9.0% 8.9% 9.1% 8.9%
Portfolio Turnover Rate.......... 21% 33% 22% 6% 18% 25% 28% 23% 7% 12%
<FN>
(1) During the year ended December 31, 1987, the Adviser and the Administrator
reduced their fees. Had such actions not been undertaken, the net investment
income per share and the ratios would have been as follows:
Year Ended December 31,
1987
Net investment income per share.... $ 0.949
========
Ratios (As a percentage of average net assets):
Expenses........................ 0.8%
========
Net investment income........... 8.9%
========
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
----------------------------------------------------------------------------------------
WRIGHT TOTAL RETURN
BOND FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 11.430 $ 13.010 $ 12.610 $12.580 $11.700 $ 12.010 $ 11.430 $11.560 $13.120 $11.930
-------- -------- -------- -------- ------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854 $ 0.886 $ 0.923 $ 0.947 $ 0.957 $ 0.996
Net realized and unrealized
gain (loss) on investments..... 1.685 (1.580) 0.580 0.030 0.880 (0.312) 0.573 (0.130) (1.367) 1.364
-------- --------- ------- -------- -------- ------- -------- -------- -------- --------
Total income (loss) from investment
operations..................... $ 2.443 $ (0.840)$ 1.369 $ 0.860 $ 1.734 $ 0.574 $ 1.496 $ 0.817 $(0.410)$ 2.360
-------- ---------- ------ -------- ------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income....... $ (0.753)$ (0.740)$ (0.789)$(0.830) $(0.854) $(0.884)$(0.916) $(0.947) $(1.140)$(1.000)
From net realized gain on investments -- -- (0.177) -- -- -- -- -- (0.010) (0.170)
In excess of net realized gain on
investments..................... -- -- (0.003) -- -- -- -- -- -- --
-------- --------- ------- -------- ------- -------- -------- -------- -------- --------
Total distributions........... $ (0.753)$ (0.740) $(0.969) $(0.830)$(0.854) $(0.884)$(0.916) $(0.947) $(1.150)$(1.170)
-------- --------- -------- -------- ------ -------- ------- -------- -------- --------
Net asset value, end of year....... $ 13.120 $ 11.430 $ 13.010 $12.610 $12.580 $ 11.700 $ 12.010 $11.430 $11.560 $13.120
======= ======== ======== ======= ======== ======== ======== ======= ======== ========
Total Return(2).................... 21.97% (6.57%) 11.03% 7.13% 15.38% 5.29% 13.58% 7.24% (3.13%) 20.54%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)................... $122,762 $143,497 $259,513 $217,564 $134,728 $112,408 $ 82,141 $ 31,410 $28,051 $19,278
Ratio of net expenses to average
net assets...................... 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.9% 0.9% 0.8% 0.9%
Ratio of net investment income to
average net assets.............. 6.2% 6.1% 6.0% 6.7% 7.2% 7.7% 7.7% 8.2% 8.2% 7.8%
Portfolio Turnover Rate.......... 50% 32% 36% 13% 56% 48% 33% 11% 120% 20%
<FN>
(1) The Principal Underwriter reduced its distribution fees during each of the
four years in the period ended December 31, 1989. The Adviser and the
Administrator also reduced their fees during the year ended December 31,
1987. Had such actions not been undertaken, the net investment income per
share and the ratios would have been as follows:
Year Ended December 31,
--------------------------------
1989 1988 1987 1986
--------------------------------
Net investment income per share.... $ 0.911 $ 0.934 $ 0.937 $ 0.981
======== ======= ======== ========
Ratios (As a percentage of average net assets):
Expenses....................... 1.0% 1.0% 1.0% 1.1%
======== ======== ======= ========
Net investment income........... 7.6% 8.1% 8.0% 7.6%
======== ======== ======= ========
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
------------------------------------------------------------------------------
WRIGHT CURRENT
INCOME FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987(2)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.. $ 9.710 $ 10.750 $10.780 $10.850 $ 10.160 $ 10.090 $ 9.660 $ 9.760 $10.000
-------- -------- -------- ------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1).......... $ 0.696 $ 0.690 $ 0.728 $ 0.767 $ 0.798 $ 0.859 $ 0.870 $ 0.929 $ 0.628
Net realized and unrealized gain
(loss) on investments............ 0.955 (1.040) (0.030) (0.069) 0.690 0.080 0.440 (0.100) (0.240)
-------- -------- -------- -------- ------- -------- -------- -------- --------
Total income (loss) from investment
operations...................... $ 1.651 $(0.350) $0.698 $ 0.698 $ 1.488 $ 0.939 $ 1.310 $ 0.829 $ 0.388
-------- -------- -------- ---------------- -------- -------- -------- --------
Less Distributions:
From net investment income........ $ (0.691)$(0.690)(4)$(0.728)$(0.767)$0.798)$(0.859) $ (0.870)$(0.929) $ 0.628)
From net realized gain............ -- -- -- (0.001) -- (0.010) (0.010) -- --
-------- -------- -------- ------- -------- -------- -------- -------- --------
Total distributions.............. $ (0.691)$(0.690) $(0.728)$(0.768) $(0.798)$(0.869) $(0.880)$(0.929) $(0.628)
-------- -------- -------- ------- -------- -------- -------- -------- --------
Net asset value, end of year........ $ 10.670 $ 9.710 $10.750 $10.780 $ 10.850 $ 10.160 $10.090 $ 9.660 $ 9.760
======== ======== ======= ========= ======= ======== ======= ========= ========
Total Return(5)..................... 17.46% (3.30%) 6.59% 6.73% 15.31% 9.85% 14.15% 8.71% 4.06%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $66,345 $84,178 $115,158 $ 99,676$ 65,700 $17,601 $13,925 $10,990 $5,435
Ratio of net expenses to average
net assets...................... 0.9% 0.8% 0.8% 0.9% 0.9% 0.9% 0.9% 0.0% 0.0%
Ratio of net investment income to
average net assets............... 6.8% 6.9% 6.7% 7.2% 7.6% 8.6% 8.8% 9.5% 9.2%
Portfolio Turnover Rate........... 26% 10% 4% 13% 5% 10% 15% 12% 2%
<FN>
(1) During each of the five years in the period ended December 31, 1991, the
operating expenses of the Fund were reduced either by a reduction of the
investment adviser fee, administrator fee, or distribution fee or through
the allocation of expenses to the Adviser, or a combination of these. Had
such actions not been undertaken, the net investment income per share and
the ratios would have been as follows:
Year Ended December 31,
------------------------------------------
1991 1990 1989 1988 1987(2)
------------------------------------------
Net investment income per share.... $ 0.787 $ 0.809 $ 0.821 $ 0.807 $ 0.524
======== ======== ======= ======== ========
Ratios (As a percentage of average net assets):
Expenses....................... 1.0% 1.4% 1.4% 1.8% 1.8%(3)
======== ======== ======= ======== ========
Net investment income........... 7.5% 8.1% 8.3% 7.7% 7.4%(3)
======== ======== ======= ======== ========
(2) Period from April 15, 1987 (commencement of operations) to December 31, 1987.
(3) Computed on an annualized basis.
(4) Includes distribution in excess of net investment income of $.00013 per share.
(5) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended December 31,
THE WRIGHT U.S. TREASURY ------------------------------------------------------------
MONEY MARKET FUND 1995 1994 1993 1992 1991(2)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value-- beginning of year........ $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1)................ 0.05212 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income.............. (0.05212) (0.03494) (0.02503) (0.03221) (0.02526)
--------- --------- --------- --------- ---------
Net asset value, end of year............... $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return(4)............................ 5.34% 3.55% 2.53% 3.27% 5.06%(3)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)... $45,889 $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average net assets 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3)
Net investment income to average net assets 5.22% 3.77% 2.52% 3.19% 4.95%(3)
<FN>
(1) During each of the years in the five-year period ended December 31, 1995,
the Investment Adviser reduced its fee and in certain years was allocated a
portion of the operating expenses. Had such actions not been undertaken, net
investment income per share and the ratios would have been as follows:
Year Ended December 31,
---------------------------------------------------------------
1995 1994 1993 1992 1991(2)
---------------------------------------------------------------
Net investment income per share............ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses................................ 0.65% 0.71% 0.97% 0.72% 0.97%(3)
========= ========= ========= ========= =========
Net investment income .................. 5.03% 3.51% 1.99% 2.93% 4.23%(3)
========= ========= ========= ========= =========
(2) For the period from the start of business, June 28, 1991, to December 31, 1991.
(3) Annualized.
(4) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the payable date.
(5) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning
in 1995. If these credits were considered, the ratio of net expenses to
average daily net assets would have been reduced to 0.45%.
</FN>
</TABLE>
<PAGE>
THE FUNDS AND THEIR
INVESTMENT OBJECTIVES AND POLICIES
The investment objective and, unless otherwise indicated, policies of each
Fund may be changed by the Trustees without a vote of the Fund's shareholders.
Any such change of the investment objective of a Fund will be preceded by thirty
days advance notice to each shareholder of such Fund. If any changes were made,
a Fund might have investment objectives different from the objectives which an
investor considered appropriate at the time the investor became a shareholder in
such Fund. There is no assurance that any of the Funds will achieve its
investment objective. The market price of securities held by the Funds and the
net asset value of each Fund's shares will fluctuate in response to stock market
developments and, for the WIBC, currency rate fluctuations.
THE WRIGHT MANAGED EQUITY TRUST
The Wright Managed Equity Trust (the "Equity Trust") consists of four
equity funds: Wright Selected Blue Chip Equities Fund (WBC), Wright Junior Blue
Chip Equities Fund (WJBC), Wright Quality Core Equities Fund (WQC), and Wright
International Blue Chip Equities Fund (WIBC) (the "Equity Funds").
The objective of each Equity Fund is to provide long-term growth of capital
and at the same time earn reasonable current income. Securities selected for
each Fund except Wright International Blue Chip Equities Fund are drawn from an
investment list prepared by Wright Investors' Service, Inc., the Investment
Adviser to the Trusts ("Wright" or "Investment Adviser"), and known as The
Approved Wright Investment List (the "AWIL"). Securities selected for WIBC are
drawn from an investment list prepared by Wright and known as The International
Approved Wright Investment List (the "International AWIL").
APPROVED WRIGHT INVESTMENT LIST (AWIL). Wright systematically reviews about
3,000 U.S. companies in its proprietary database in order to identify those
which, on the basis of at least five years of audited records, pass the minimum
standards of prudence (e.g. the value of the company's assets and shareholders'
equity exceeds certain minimum standards and its operations have been profitable
during the last three years) and thus are suitable for consideration by
fiduciary investors. Companies which meet these requirements (about 1,700
companies) are considered by Wright to be of "investment grade." They may be
large or small, may have their securities traded on exchanges or over the
counter, and may include companies not currently paying dividends on their
shares.
THE INTERNATIONAL APPROVED WRIGHT INVESTMENT LIST (INTERNATIONAL AWIL).
Wright systematically reviews the about 8,000 non-U.S. companies from 36
countries contained in Wright's WORLDSCOPE(R) database in order to identify
those which, on the basis of at least five years of audited records, pass the
minimum standards of prudence (e.g. the value of the company's assets and
shareholders' equity exceeds certain minimum standards and its operations have
been profitable during the last three years) and thus are suitable for
consideration by fiduciary investors. Companies which meet these requirements
(about 3,000 companies) are considered by Wright to be "investment grade". They
may be large or small, may have their securities traded on exchanges or over the
counter, and may include companies not currently paying dividends on their
shares.
These companies are then subjected to extensive analysis and evaluation in
order to identify those which meet Wright's 32 fundamental standards of
investment quality. Only those companies which meet or exceed all of these
standards are eligible for selection by the Wright Investment Committee for
inclusion in the AWIL or the International AWIL. See the Statement of Additional
Information for a more detailed description of Wright Quality Ratings, the AWIL
and the International AWIL.
All companies on the AWIL or International AWIL are, in the opinion of
Wright, soundly financed "True Blue Chips" with established records of earnings
profitability and equity growth. All have established investment acceptance and
active, liquid markets for their publicly owned shares. The AWIL will normally
be made up of approximately 350 companies.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC). This Fund seeks to enhance
the total investment return (consisting of price appreciation plus income) by
providing active management of equity securities of well-established companies
meeting strict quality standards. Equity securities are limited to those
companies whose current operations reflect defined, quantified characteristics
which have been identified by Wright as being likely to provide comparatively
superior total investment return. The process selects approximately two-thirds
of the WQC companies on the basis of Wright's evaluation of their outlook.
Investments are equally weighted.
<PAGE>
The disciplines which determine sale include preventing individual holdings
from exceeding 2 1/2 times their normal value position in this Fund, preventing
the retention of the securities of any company which no longer meets the
standards of the AWIL, and portfolio holdings which cease to meet the outlook
criteria described above. The disciplines which determine purchase provide that
new funds, income from securities currently held, and proceeds of sales of
securities will be used to increase those positions which at current market
values are the furthest below their normal target values and to purchase
companies which become eligible for the portfolio.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in Selected Blue Chip equity securities, including common stocks,
preferred stocks and securities convertible into stock. This is a fundamental
policy that can only be changed with shareholder approval. However, for
temporary defensive purposes the Fund may hold cash or invest more than 20% of
its net assets in the short-term debt securities described under "Other
Investment Policies -- Defensive Investments."
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC). This Fund seeks to enhance
the total investment return (consisting of price appreciation plus income) by
providing management of equity securities of smaller companies still
experiencing their rapid growth period. Equity securities selected are limited
to those companies selected for the WQC Fund which when sorted by stock market
capitalization represent the smaller companies on the list. Investments are
equally weighted.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in Junior Blue Chip equity securities, including common stocks,
preferred stocks and securities convertible into stock. This is a fundamental
policy that can only be changed with shareholder approval. However, for
temporary defensive purposes the Fund may hold cash or invest more than 20% of
its net assets in the short-term debt securities described under "Other
Investment Policies -- Defensive Investments."
Somewhat higher volatility of market pricing and greater variability of
individual stock investment returns can be expected in this Fund as compared to
either Wright Quality Core Equities Fund or Wright Selected Blue Chip Equities
Fund, which invest in larger companies.
WRIGHT QUALITY CORE EQUITIES FUND (WQC). This Fund seeks to enhance total
investment return (consisting of price appreciation plus income) by providing
management of a broadly diversified portfolio of equity securities of
well-established companies meeting strict quality standards. The Fund will,
through continuous professional investment supervision by Wright, pursue these
objectives by investing in a diversified portfolio of common stocks of what are
believed to be high-quality, well-established and profitable companies.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in equity securities, including common stocks, preferred stocks and
securities convertible into stock. This is a fundamental policy that can only be
changed with shareholder approval. However, for temporary defensive purposes the
Fund may hold cash or invest more than 20% of its net assets in the short-term
debt securities described under "Other Investment Policies -- Defensive
Investments."
This Fund is quality oriented and is suitable for a total equity account or
as a base portfolio for accounts with multiple objectives. Investments, except
for temporary defensive investments, will be made solely in companies on the
AWIL. In selecting companies from the AWIL for this portfolio, the Investment
Committee of Wright selects, based on quantitative formulae, those companies
which are expected to do better over the intermediate term. The quantitative
formulae take into consideration factors such as over/under valuation and
compatibility with current market trends. Investments in the portfolio are
equally weighted in the selected securities.
The disciplines which determine sale include preventing individual holdings
from exceeding 2 1/2 times their normal value position in this Fund and
requiring the sale of the securities of any company which no longer meets the
standards of the AWIL. Also, portfolio holdings which fall in the unfavorable
category based on the quantitative formulae described above are generally sold.
The disciplines which determine purchase provide that new funds, income from
securities currently held, and proceeds of sales of securities will be used to
increase those positions which at current market are the furthest below their
normal target values and to purchase companies which become eligible for the
portfolio as described above.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). The Fund seeks to
enhance the total investment return (consisting of price appreciation plus
income) by providing management of a broadly diversified portfolio of equity
securities of well-established, non-U.S. companies meeting strict quality
standards. The Fund will, through continuous professional investment supervision
by Wright, pursue these objectives by investing in a diversified portfolio of
equity securities
<PAGE>
of high-quality, well-established and profitable non-U.S.
companies having their principal business activities in at least three different
countries outside the United States.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in International Blue Chip equity securities, including common
stocks, preferred stocks and securities convertible into stock. This is a
fundamental policy that can only be changed with shareholder approval.
International Blue Chip equity securities are those which are included in the
International AWIL, as described above. However, for temporary defensive
purposes the Fund may hold cash or invest more than 20% of its net assets in the
short-term debt securities described under "Other Investment Policies --
Defensive Investments."
The Fund may purchase equity securities traded on a securities market of
the country in which the company is located or other foreign securities
exchanges, or it may purchase American Depositary Receipts ("ADRs") traded in
the United States. Purchases of shares of the Fund are suitable for investors
wishing to diversify their portfolios by investing in non-U.S. companies or for
investors who simply wish to participate in non-U.S. investments. Although the
value of the Fund's net assets per share will be calculated in U.S. dollars,
fluctuations in foreign currency exchange rates may affect the value of an
investment in the Fund.
The disciplines which determine sale include disposing of equity securities
of any company which no longer meets the quality standards of the International
AWIL. The disciplines which determine purchase provide that new funds, income
from the Fund's portfolio securities and proceeds of sales of the Fund's
portfolio securities will be used to increase those positions which at current
market value are the furthest below their normal target values.
THE WRIGHT MANAGED INCOME TRUST
The Wright Managed Income Trust (the "Income Trust") consists of four fixed
income funds, Wright U.S. Treasury Fund (WUSTB), Wright U.S. Treasury Near Term
Fund (WNTB), Wright Total Return Bond Fund (WTRB), Wright Current Income Fund
(WCIF) (the "Income Funds"), and a money market fund, Wright U.S. Treasury Money
Market Fund.
Each Income Fund's investment objective is to provide a high level of
return consistent with the quality standards and average maturity for such Fund.
Each Fund seeks to achieve its objective through the investment policies
described below.
WRIGHT U.S. TREASURY FUND (WUSTB). The Fund invests in U.S. Treasury bills,
notes and bonds. Under normal market conditions, the Fund will invest
substantially all, but in any case at least 65%, of its total assets in such
U.S. Treasury obligations and in repurchase agreements with respect to such
obligations. The Fund will not invest in mortgage-related securities.
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB). The Fund invests in U.S.
Treasury obligations with an average weighted maturity of less than five years.
This Fund is designed to appeal to the investor seeking a high level of income
that is normally somewhat less variable and normally somewhat higher than that
available from short-term U.S. Treasury money market securities and who is also
seeking to limit fluctuation of capital (i.e., compared with longer term U.S.
Treasury securities). Portfolio securities will consist entirely of U.S.
Treasury obligations, such as U.S. Treasury bills, notes and bonds.
WRIGHT TOTAL RETURN BOND FUND (WTRB). The Fund invests in bonds or other
high-grade debt securities selected by the Investment Adviser with a weighted
average maturity that, in the Investment Adviser's judgment, produces the best
total return, i.e., the highest total of ordinary income plus capital
appreciation. There are no limits on the minimum or maximum weighted average
maurity of the Fund's portfolio or on the maturity of any individual security.
Accordingly, investment selections may differ depending on the particular phase
of the interest rate cycle. Assets of this Fund may be invested in U.S.
Government and agency obligations, certificates of deposit of federally insured
banks and corporate obligations rated at the date of investment "A" or better
(high grade) by Standard & Poor's Ratings Group ("S&P") or by Moody's Investors
Service, Inc. ("Moody's") or, if not rated by such rating organizations, of
comparable quality as determined by Wright pursuant to guidelines established by
the Trustees. In any case, they must also meet Wright Quality Rating Standards.
The Fund will dispose of securities downgraded below A.
WRIGHT CURRENT INCOME FUND (WCIF). The Fund invests primarily in debt
obligations issued or guaranteed by the U.S. Government or any of its agencies
or instrumentalities, mortgage-related securities of governmental or corporate
issuers and corporate debt securities. The U.S. Government
<PAGE>
securities in which the Fund may invest include direct obligations of the
U.S. Government, such as bills, notes, and bonds issued by the U.S. Treasury;
obligations of U.S. Government agencies and instrumentalities secured by the
full faith and credit of the U.S. Treasury, such as securities of the Government
National Mortgage Association (GNMA) or the Export-Import Bank; obligations
secured by the right to borrow from the U.S. Treasury, such as securities issued
by the Federal Financing Bank or the Student Loan Marketing Association; and
obligations backed only by the credit of the government agency itself, such as
securities of the Federal Home Loan Bank, the Federal National Mortgage
Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC).
The Fund may invest in mortgage-related securities issued by certain of the
agencies or federally chartered corporations listed above. These include
mortgage-backed securities of GNMA, FNMA and FHLMC, debentures and short-term
notes issued by FNMA and collateralized mortgage obligations issued by FHLMC.
The Fund expects to concentrate its investments in Ginnie Mae pass-through
securities guaranteed by the Government National Mortgage Association (GNMA or
Ginnie Mae). These securities are backed by a pool of mortgages which pass
through to investors the principal and interest payments of homeowners. Ginnie
Mae guarantees that investors will receive timely principal payments even if
homeowners do not make their mortgage payments on time. See "Other Investment
Policies -- Mortgage-Related Securities" below.
The corporate debt securities in which the Fund may invest include
commercial paper and other short-term instruments rated A-1 by S&P or P-1 by
Moody's. The Fund may invest in unrated debt securities if these are determined
by Wright pursuant to guidelines established by the Trustees to be of a quality
comparable to that of the rated securities in which the Fund may invest. All of
the corporate debt securities purchased by the Fund must meet Wright Quality
Rating Standards.
The Fund may enter into repurchase agreements with respect to any
securities in which it may invest.
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM). The Fund's objective is to
provide as high a rate of current income as possible consistent with the
preservation of capital and maintenance of liquidity. The Fund will pursue its
objective by investing exclusively in securities of the U.S. Government and its
agencies that are backed by the full faith and credit of the U.S. Government
("U.S. Government securities") and in repurchase agreements relating to such
securities. At least 80% of the Fund's assets will be invested in direct
obligations of the U.S. Treasury, including Treasury bills, notes and bonds,
which differ only in their interest rates, maturities and times of issuance. Up
to 20% of the Fund's net assets may be held in cash or invested in repurchase
agreements. However, at the present time, the Fund intends to invest only in
U.S. Treasury bills, notes and bonds and does not intend to invest in repurchase
agreements.
The Fund will limit its portfolio to investments maturing in 13 months or
less and maintain a weighted average maturity of not more than 90 days. The Fund
will seek to maintain a net asset value of $1.00 per share, but there is no
assurance that the Fund will be able to do so. The yield of the Fund will
fluctuate in response to changes in market conditions and interest rates.
The Fund will limit its investments to legal investments and investment
practices for federal credit unions as set forth in the Federal Credit Union Act
and the National Credit Union Administration Regulations. The Fund will provide
all federal credit union shareholders of record with sixty (60) days' written
notice prior to changing such investment policy.
None of the Funds is intended to be a complete investment program, and the
prospective investor should take into account his objectives and other
investments when considering the purchase of any Fund's shares. The Funds cannot
eliminate risk or assure achievement of their objectives.
OTHER INVESTMENT POLICIES
Each Trust has adopted certain fundamental investment restrictions which
are enumerated in detail in the Statement of Additional Information and which
may be changed as to a Fund only by the vote of a majority of the Fund's
outstanding voting securities. Among these restrictions, a Fund may not borrow
money in excess of 1/3 of the current market value of the net assets of a Fund
(excluding the amount borrowed). Also, each Fund will not invest more than 5% of
a Fund's total assets taken at current market value in the securities of any one
issuer, purchase more than 10% of the voting securities of any one issuer or
invest 25% or more of the Fund's total assets in the securities of issuers in
the same industry. There is, however, no limitation in respect to
<PAGE>
investments in obligations issued or guaranteed by the U.S. Government or
its agencies or instrumentalities. No Fund may invest more than 15% of its net
assets (10% for Wright U.S. Treasury Money Market Fund) in illiquid investments.
None of the Funds has any current intention of borrowing for leverage or
speculative purposes.
Wright U.S. Treasury Money Market Fund may not invest more than 5% of its
total assets (taken at amortized cost) in securities issued by any one issuer or
more than 10% of its total assets in securities subject to puts from or issued
by any one issuer (except U.S. Government securities and repurchase agreements
collateralized by such securities). However, a single investment may exceed such
limit if such security (i) is rated in the highest rating category of the
requisite number of nationally recognized statistical rating organizations or,
if unrated, is determined to be of comparable quality and (ii) is held for not
more than three business days. In addition, the Fund may not invest more than 5%
of its total assets (taken at amortized cost) in securities of issuers not in
such highest rating category or, if unrated, of comparable quality. An
investment in any one such issuer is limited to no more than 1% of such total
assets or $1 million, whichever is greater.
REPURCHASE AGREEMENTS. Each of the Funds may enter into repurchase
agreements to the extent permitted by its investment policies. A repurchase
agreement is an agreement under which the seller of securities agrees to
repurchase and the Fund agrees to resell the securities at a specified time and
price. A Fund may enter into repurchase agreements only with large,
well-capitalized banks or government securities dealers that meet Wright credit
standards. In addition, such repurchase agreements will provide that the value
of the collateral underlying the repurchase agreement will always be at least
equal to the repurchase price, including any accrued interest earned under the
repurchase agreement. In the event of a default or bankruptcy by a seller under
a repurchase agreement, the Fund will seek to liquidate such collateral.
However, the exercise of the right to liquidate such collateral could involve
certain costs, delays and restrictions and is not ultimately assured. To the
extent that proceeds from any sale upon a default of the obligation to
repurchase are less than the repurchase price, the Fund could suffer a loss.
FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES. Each Fund may purchase
when-issued securities and make contracts to purchase or sell securities for a
fixed price at a future date beyond customary settlement time. A Fund is
required to hold and maintain in a segregated account with the Fund's custodian
or subcustodian until the settlement date, cash or other high-grade liquid debt
obligations in an amount sufficient to meet the purchase price. Alternatively, a
Fund may enter into offsetting contracts for the forward sale of other
securities that it owns. Securities purchased or sold on a when-issued or
forward commitment basis involve a risk of loss if the value of the security to
be purchased declines prior to the settlement date or if the value of the
security to be sold increases prior to the settlement date. Although a Fund
would generally purchase securities on a when-issued or forward commitment basis
with the intention of acquiring securities for its portfolio, each Fund may
dispose of a when-issued security or forward commitment prior to settlement if
the Investment Adviser deems it appropriate to do so.
DEFENSIVE INVESTMENTS. During periods of unusual market conditions, when
Wright believes that investing for temporary defensive purposes is appropriate,
all or a portion of each Fund's assets may be held in cash or invested in
short-term obligations. Short-term obligations include but are not limited to
short-term obligations issued or guaranteed as to interest and principal by the
U.S. Government or any agency or instrumentality thereof (including repurchase
agreements collateralized by such securities); commercial paper which at the
date of investment is rated A-1 by S&P or P-1 by Moody's, or, if not rated by
such rating organizations, is deemed by Wright pursuant to procedures
established by the Trustees to be of comparable quality; short-term corporate
obligations and other debt instruments which at the date of investment are rated
AA or better by S&P or Aa or better by Moody's or, if unrated by such rating
organizations, are deemed by Wright pursuant to procedures established by the
Trustees to be of comparable quality; and certificates of deposit, bankers'
acceptances and time deposits of domestic banks which are determined to be of
high quality by Wright pursuant to procedures established by the Trustees. The
Funds may invest in instruments and obligations of banks that have other
relationships with the Funds, Wright or Eaton Vance Management, the Trusts'
Administrator ("Eaton Vance" or "Administrator").
No preference will be shown towards investing in banks which have such
relationships.
MORTGAGE-RELATED SECURITIES. WTRB and WCIF may invest in mortgage-related
securities, including collateralized mortgage obligations ("CMOs") and other
derivative mortgage-related securities. These securities will either be issued
<PAGE>
by the U.S. Government or one of its agencies or instrumentalities or, if
privately issued, supported by mortgage collateral that is insured, guaranteed
or otherwise backed by the U.S. Government or its agencies or instrumentalities.
THE FUNDS DO NOT INVEST IN THE RESIDUAL CLASSES OF CMOS, STRIPPED
MORTGAGE-RELATED SECURITIES, LEVERAGED FLOATING RATE INSTRUMENTS OR INDEXED
SECURITIES.
Mortgage-related securities represent participation interests in pools of
adjustable and fixed mortgage loans. Unlike conventional debt obligations,
mortgage-related securities provide monthly payments derived from the monthly
interest and principal payments (including any prepayments) made by the
individual borrowers on the pooled mortgage loans. The mortgage loans underlying
mortgage-related securities are generally subject to a greater rate of principal
prepayments in a declining interest rate environment and to a lesser rate of
principal prepayments in an increasing interest rate environment. Under certain
interest and prepayment rate scenarios, a Fund may fail to recover the full
amount of its investment in mortgage-related securities purchased at a premium,
notwithstanding any direct or indirect governmental or agency guarantee. The
Fund may realize a gain on mortgage-related securities purchased at a discount.
Since faster than expected prepayments must usually be invested in lower
yielding securities, mortgage-related securities are less effective than
conventional bonds in "locking in" a specified interest rate. Conversely, in a
rising interest rate environment, a declining prepayment rate will extend the
average life of many mortgage-related securities. Extending the average life of
a mortgage-related security increases the risk of depreciation due to future
increases in market interest rates.
A Fund's investments in mortgage-related securities may include
conventional mortgage pass-through securities and certain classes of multiple
class CMOs. Senior CMO classes will typically have priority over residual CMO
classes as to the receipt of principal and/or interest payments on the
underlying mortgages. The CMO classes in which a Fund may invest include
sequential and parallel pay CMOs, including planned amortization class ("PAC")
and target amortization class ("TAC") securities.
Different types of mortgage-related securities are subject to different
combinations of prepayment, extension, interest rate and/or other market risks.
Conventional mortgage pass-through securities and sequential pay CMOs are
subject to all of these risks, but are typically not leveraged. PACs, TACs and
other senior classes of sequential and parallel pay CMOs involve less exposure
to prepayment, extension and interest rate risk than other mortgage-related
securities, provided that prepayment rates remain within expected prepayment
ranges or "collars."
LENDING PORTFOLIO SECURITIES. All of the Funds in the Equity Trust may seek
to increase total return by lending portfolio securities to broker-dealers or
other institutional borrowers. Under present regulatory policies of the
Securities and Exchange Commission, such loans are required to be continuously
secured by collateral in cash, cash-equivalents and U.S. Government securities
held by the Fund's custodian and maintained on a current basis at an amount at
least equal to the market value of the securities loaned, which will be marked
to market daily. During the existence of a loan, a Fund will continue to receive
the equivalent of the interest or dividends paid by the issuer on the securities
loaned and will also receive a fee, or all or a portion of the interest, if any,
on investment of the collateral. However, the Fund may at the same time pay a
transaction fee to such borrowers and administrative expenses, such as finders
fees to third parties. As with other extensions of credit there are risks of
delay in recovery or even loss of rights in the securities loaned if the
borrower of the securities fails financially. However, the loans will be made
only to organizations deemed by the Investment Adviser to be of good standing
and when, in the judgment of the Investment Adviser, the consideration which can
be earned from securities loans of this type justifies the attendant risk. The
financial condition of the borrower will be monitored by the Investment Adviser
on an ongoing basis and collateral values will be continuously maintained at no
less than 100% by "marking to market" daily. If the Investment Adviser decides
to make securities loans, it is intended that the value of the securities loaned
would not exceed 30% of the Fund's total assets.
FOREIGN INVESTMENT RISK. Investing in securities of foreign companies and
governments involves certain considerations in addition to those arising when
investing in domestic securities. These considerations include the possibility
of currency exchange rate fluctuations and revaluation of currencies, the
existence of less publicly available information about foreign issuers,
different accounting, auditing and financial reporting standards, less stringent
securities regulation, non-negotiable brokerage commissions, different tax
provisions, political or social instability, war or expropriation. Moreover,
foreign stock and bond markets generally are not as developed and efficient as
those in the United States and, therefore, the volume and liquidity in those
<PAGE>
markets may be less, and the volatility of prices may be greater, than in U.S.
markets. Settlement of transactions on foreign markets may be delayed beyond
what is customary in U.S. markets. These considerations generally are of greater
concern in developing countries.
The value in U.S. dollars of investments quoted or denominated in foreign
currencies will be affected by changes in currency exchange rates. As one way of
managing currency exchange rate risk, the WIBC Fund may enter into forward
foreign currency exchange contracts, which are agreements to purchase or sell a
designated amount of foreign currencies at a specified price and date. The Fund
will usually enter into these contracts to fix the U.S. dollar value of a
security it has agreed to buy or sell. The Fund may also use these contracts to
hedge the U.S. dollar value of a security it already owns, particularly if it
expects a decline in the value of the currency in which the foreign security is
quoted or denominated. Although the Fund will attempt to benefit from using
forward contracts, the success of its hedging strategy will depend on the
Investment Adviser's ability to predict accurately the future exchange rate
between foreign currencies and the U.S. dollar. The ability to predict the
direction of currency exchange rates involves skills different from those used
in selecting securities. WIBC may hold foreign currency or short-term U.S. or
foreign government securities pending investment in foreign securities.
THE INVESTMENT ADVISER
The Winthrop Corporation ("Winthrop") has been engaged to act as investment
adviser to the Trusts pursuant to Investment Advisory Contracts. Pursuant to a
service agreement effective February 1, 1996 between Winthrop and its
wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright), Wright,
acting under the general supervision of the Trustees, furnishes each Fund with
investment advice and management services. Winthrop supervises Wright's
performance of this function and retains its contractual obligations under its
Investment Advisory Contracts. The address of both Winthrop and Wright is 1000
Lafayette Boulevard, Bridgeport, Connecticut. The Trustees are responsible for
the general oversight of the conduct of each Funds' business.
Wright is a leading independent international investment management and
advisory firm which, together with its parent, Winthrop, has more than 30 years'
experience. Its staff of over 150 people includes a highly respected team of 65
economists, investment experts and research analysts. Wright manages assets for
bank trust departments, corporations, unions, municipalities, eleemosynary
institutions, professional associations, institutional investors, fiduciary
organizations, family trusts and individuals as well as mutual funds. Wright
operates one of the world's largest and most complete databases of financial
information on 13,000 domestic and international corporations. The estate of
John Winthrop Wright is the controlling shareholder of Winthrop. At the end of
1995, Wright managed approximately $4 billion of assets.
Under the Investment Advisory Contracts, each Fund is required to pay
Winthrop a monthly advisory fee calculated at the annual rates (as a percentage
of average daily net assets) set forth in the table below. Effective February 1,
1996, Winthrop will cause the Funds to pay to Wright the entire amount of the
advisory fee payable by each Fund under its Investment Advisory Contract with
Winthrop. The following table also lists each Fund's aggregate net assets at
December 31, 1995 and the advisory fee rate paid for the fiscal year ended
December 31, 1995.
<TABLE>
A N N U A L % A D V I S O R Y F E E R A T E S
------------------------------------------------------------- Aggregate Fee Rate Paid
Under $100 Mil.to $250 Mil.to $500 Mil.to Over Net Assets the Fiscal Year
$100 Mil. $250 Mil. $500 Mil. $1 Billion $1 Billion at 12/31/95 Ended 12/31/95
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund (WBC)0.55% 0.69% 0.67% 0.63% 0.58% $217,587,944 0.62%
Wright Junior Blue Chip Equities Fund (WJBC) 0.55% 0.69% 0.67% 0.63% 0.58% 25,993,458 0.55%
Wright Quality Core Equities Fund (WQC) 0.45% 0.59% 0.57% 0.53% 0.48% 49,134,274 0.45%
Wright International Blue Chip Equities
Fund (WIBC) 0.75% 0.79% 0.77% 0.73% 0.68% 237,175,946 0.77%
Wright U.S. Treasury Fund (WUSTB) 0.40% 0.46% 0.42% 0.38% 0.33% 15,156,244 0.40%(1)
Wright U.S. Treasury Near Term Fund (WNTB) 0.40% 0.46% 0.42% 0.38% 0.33% 143,599,834 0.43%
Wright Total Return Bond Fund (WTRB) 0.40% 0.46% 0.42% 0.38% 0.33% 122,761,602 0.41%
Wright Current Income Fund (WCIF) 0.40% 0.46% 0.42% 0.38% 0.33% 66,345,173 0.40%
Wright U.S. Treasury Money Market
Fund (WTMM) 0.35% 0.32% 0.32% 0.30% 0.30% 45,888,947 0.35%(2)
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) To enhance the net income of the Fund, Wright made a reduction of its
advisory fee in the amount of $17,515 or from 0.40% to 0.29%. (2) To enhance the
net income of the Fund, Wright made a reduction of the advisory fee in the
amount of $87,656 or from 0.35% to 0.16%.
</FN>
</TABLE>
<PAGE>
The combined advisory and administration fee rates paid by WBC, WJBC and
WIBC are believed to be higher than those paid by most other mutual funds. This
higher fee is attributable to the specialized expertise required to implement
each Fund's investments and is comparable to the fees paid by many other funds
with similar investment objectives and policies.
Shareholders of the Funds who are also advisory clients of Wright may have
agreed to pay Wright a fee for such advisory services. Wright does not intend to
exclude from the calculation of the investment advisory fees payable to Wright
by such advisory clients the portion of the advisory fee payable by the Funds.
Accordingly, a client may pay an advisory fee to Wright in accordance with
Wright's customary investment advisory fee schedule charged to investment
advisory clients and at the same time, as a shareholder in a Fund, bear its
share of the advisory fee paid by the Fund to Wright as described above.
Pursuant to the Investment Advisory Contracts, Wright also furnishes for
the use of each Fund office space and all necessary office facilities, equipment
and personnel for servicing the investments of each Fund. Each Fund is
responsible for the payment of all expenses relating to its operations other
than those expressly stated to be payable by Wright under its Investment
Advisory Contracts.
Wright places the portfolio security transactions for each Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments. Wright seeks to execute the Funds' portfolio security transactions
on the most favorable terms and in the most effective manner possible. Subject
to the foregoing, Wright may consider sales of shares of the Funds or of other
investment companies sponsored by Wright as a factor in the selection of
broker-dealer firms to execute such transactions.
An Investment Committee of senior officers, all of whom are experienced
analysts, exercises disciplined direction and control over all investment
selections, policies and procedures for each Fund. The Committee, following
highly disciplined buy-and-sell rules, makes all decisions for the selection,
purchase and sale of all securities. The members of the Committee are as
follows:
PETER M. DONOVAN, CFA, President and Chief Executive Officer of Wright. Mr.
Donovan received a BA Economics, Goddard College and joined Wright from Jones,
Kreeger & Co., Washington, DC in 1966. Mr. Donovan is the president of The
Wright Managed Blue Chip Series Trust, The Wright Managed Income Trust, The
Wright Managed Equity Trust and The Wright EquiFund Equity Trust. He is also
director of EquiFund - Wright National Equity Fund, a Luxembourg SICAV. He is a
member of the New York Society of Security Analysts and the Hartford Society of
Financial Analysts.
JUDITH R. CORCHARD, Chairman of the Investment Committee, Executive Vice
President-Investment Management of Wright. Ms. Corchard attended the University
of Connecticut and joined Wright in 1960. She is a member of the New York
Society of Security Analysts and the Hartford Society of Financial Analysts.
JATIN J. MEHTA, CFA, Executive Counselor and Director of Education of
Wright. Mr. Mehta received a BS Civil Engineering, University of Bombay, India
and an MBA from the University of Bridgeport. Before joining Wright in 1969, Mr.
Mehta was an executive of the Industrial Credit Investment Corporation of India,
a World Bank agency in India for financial assistance to private industry. He is
a Trustee of The Wright Managed Blue Chip Series Trust. He is a member of the
New York Society of Security Analysts and the Hartford Society of Financial
Analysts.
HARIVADAN K. KAPADIA, CFA, Senior Vice President - Investment Analysis and
Information of Wright. Mr. Kapadia received a BA (hon.) Economics and Statistics
and MA Economics, University of Baroda, India and an MBA from the University of
Bridgeport. Before joining Wright in 1969, Mr. Kapadia was Assistant Lecturer at
the College of Engineering and Technology in Surat, India and Lecturer, B.J. at
the College of Commerce & Economics, VVNagar, India. He has published the
textbooks: "Elements of Statistics," "Statistics," "Descriptive Economics," and
"Elements of Economics." He was appointed Adjunct Professor at the Graduate
School of Business, Fairfield University in 1981. He is a member of the New York
Society of Security Analysts and the Hartford Society of Financial Analysts.
MICHAEL F. FLAMENT, CFA, Senior Vice President - Investment and Economic
Analysis of Wright. Mr. Flament received a BS Mathematics, Fairfield University;
MA Mathematics, University of Massachusetts and an MBA Finance, University of
Bridgeport. He is a member of the New York Society of Security Analysts and the
Hartford Society of Financial Analysts.
<PAGE>
JAMES P. FIELDS, CFA, Vice President and Investment Officer of Wright. Mr.
Fields received a B.S. Accounting, Fairfield University and an MBA Finance from
Pace University. He joined Wright in 1982 and is also a member of the New York
Society of Security Analysts.
Wright is also the investment adviser to the funds in The Wright Managed
Blue Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright
Funds").
THE ADMINISTRATOR
Each Trust engages Eaton Vance Management ("Eaton Vance" or the
"Administrator") as its administrator under an Administration Agreement. Under
the Administration Agreement, Eaton Vance is responsible for managing the legal
and business affairs of each Fund, subject to the supervision of the Trustees.
Eaton Vance's services include recordkeeping, preparation and filing of
documents required to comply with federal and state securities laws, supervising
the activities of the custodian and transfer agent, providing assistance in
connection with the Trustees' and shareholders' meetings and other
administrative services necessary to conduct each Fund's business. Eaton Vance
will not provide any investment management or advisory services to the Funds.
For its services under the Administration Agreement, Eaton Vance receives
monthly administration fees at the annual rates (as a percentage of average
daily net assets) as follows:
ANNUAL % ADMINISTRATION FEE RATES
Under $100 Mil. to $250 Mil. to Over
$100 Mil. $250 Mil. $500 Mil. $500 Mil.
- ---------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
0.20% 0.06% 0.03% 0.02%
- ---------------------------------------------------------
THE WRIGHT MANAGED INCOME TRUST
0.10% 0.04% 0.03% 0.02%
THE WRIGHT U.S. TREASURY MONEY MARKET FUND
0.07% 0.03% 0.03% 0.02%
- ---------------------------------------------------------
For the fiscal year ended December 31, 1995, each Fund paid administration
fees (as an annualized percentage of average daily net assets) as follows: WBC
(0.13%), WJBC (0.20%), WQC (0.20%), WIBC (0.12%), WUSTB (0.10%), WNTB (0.07%),
WTRB (0.09%), WCIF (0.10%) and WTMM (0.07%).
Eaton Vance, its affiliates and its predecessor companies have been
primarily engaged in managing assets of individuals and institutional clients
since 1924 and managing, administering and marketing mutual funds since 1931.
Total assets under management are over $16 billion. Eaton Vance is a
wholly-owned subsidiary of Eaton Vance Corp., ("EVC"), a publicly held holding
company.
DISTRIBUTION EXPENSES
In addition to the fees and expenses payable by each Fund in accordance
with the Investment Advisory Contracts and Administration Agreements, each Fund,
except Wright U.S. Treasury Money Market Fund, pays for certain expenses
pursuant to a Distribution Plan (the "Plans") as adopted by the Trusts and
designed to meet the requirements of Rule 12b-1 under the Investment Company Act
of 1940 (the "1940 Act") and Article III, Section 26 of the Rules of Fair
Practice of the National Association of Securities Dealers, Inc. (the "NASD").
The Trusts' Plans provide that monies may be spent by a Fund on any
activities primarily intended to result in the sale of each Fund's shares,
including, but not limited to, compensation paid to and expenses incurred by
officers, Trustees, employees or sales representatives of the Trusts, including
telephone expenses, the printing of prospectuses and reports for other than
existing shareholders, preparation and distribution of sales literature, and
advertising of any type. The expenses covered by the Trusts' Plans may include
payments to any separate distributors under agreement with the Trusts for
activities primarily intended to result in the sale of the Trusts' shares.
The Trusts have entered into a distribution contract with Wright Investors'
Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a
wholly-owned subsidiary of Winthrop. Under the Plan, it is intended that each
Fund will pay 2/10 of 1% of its average daily net assets to WISDI. Subject to
the 2/10 of 1% per annum limitation imposed by the Plans, each Fund may pay
separately for expenses of any other activities primarily intended to result in
the sale of its shares. WTMM does not pay WISDI any compensation under its
Distribution Contract.
The Principal Underwriter may use the distribution fee for its expenses of
distributing each Fund's shares, including allocable overhead expenses. Any
distribution expenses
<PAGE>
exceeding the amounts paid by the Funds to the Principal Underwriter were
not incurred by the Principal Underwriter but were paid by Wright from its own
assets. Distribution expenses not specifically attributable to a particular Fund
are allocated among the Funds based on the amount of sales of each Fund's shares
resulting from the Principal Underwriter's distribution efforts and
expenditures. If the distribution fee exceeds the Principal Underwriter's
expenses, the Principal Underwriter may realize a profit from these
arrangements. The Trusts' Plans are compensation plans. If a Plan is terminated,
the Funds will stop paying the distribution fee and the Trustees will consider
other methods of financing the distribution of the Funds' shares.
For the fiscal year ended December 31, 1995, each Fund in The Wright
Managed Equity Trust made distribution expense payments (as an annualized
percentage of average daily net assets) as follows: WBC (0.20%), WJBC (0.09%),
WQC (0.18%) and WIBC (0.20%). To enhance the net income of the WJBC and WQC
Funds, the Principal Underwriter reduced its fee by $35,853 and $11,656,
respectively.
For the fiscal year ended December 31, 1995, each Fund in The Wright
Managed Income Trust, except Wright U.S. Treasury Money Market Fund, made
distribution expense payments (as an annualized percentage of average daily net
assets as follows: WUSTB (0.00%); WNTB (0.20%); WTRB (0.20%) and WCIF (0.20%).
For WUSTB, WISDI reduced its fee in the full amount.
HOW THE FUNDS VALUE THEIR SHARES
The shares of each Fund, except Wright U.S. Treasury Money Market Fund, are
valued once on each day the New York Stock Exchange (the "NYSE" or "Exchange")
is open as of the close of regular trading on the Exchange - normally 4:00 p.m.
New York time. The net asset value is determined by Investors Bank & Trust
Company ("IBT"), the Funds' custodian (as agent for the Funds) in the manner
authorized by the Trustees. Such determination is accomplished by dividing the
number of outstanding shares of each Fund into its net worth (the excess of its
assets over its liabilities). Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or listed
securities, for which closing sale prices are not available, are valued at the
mean between latest bid and asked prices. Fixed income securities for which
market quotations are readily available are valued on the basis of valuations
supplied by a pricing service. Securities for which market quotations are
unavailable, restricted securities, and other assets are valued at their fair
value as determined in good faith by or at the direction of the Trustees. (These
valuation methods apply to debt and fixed-income as well as to equity
securities.) Short-term obligations maturing in 60 days or less are valued at
amortized cost, which approximates market value.
The net asset value per share of Wright U.S. Treasury Money Market Fund is
computed three times on each day the Exchange is open, at noon, at 3:00 p.m. and
as of the close of regular trading on the Exchange - normally 4:00 p.m. New York
time. The net asset value is determined by the Fund's custodian (as agent for
the Fund) in the manner authorized by the Trustees. The Trustees have determined
that it is in the best interests of the Fund and its shareholders to maintain a
stable price of $1.00 per share by valuing portfolio securities by the amortized
cost method in accordance with a rule of the Securities and Exchange Commission.
Portfolio securities traded on more than one United States national
securities exchange or foreign securities exchange are valued by WIBC Fund's
custodian at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities, unless those prices are deemed by Wright to be not
representative of market values. Securities which cannot be valued at such
prices, will be valued by Wright at fair value in accordance with procedures
adopted by the Trustees. Foreign currencies, options on foreign currencies and
forward foreign currency contracts will be valued at their last sales price as
determined by published quotations or as supplied by banks that deal in such
instruments. The value of all assets and liabilities expressed in foreign
currencies will be converted into U.S. dollar value at the mean between the
buying and selling rates of such currencies against U.S. dollars last quoted by
any major bank. If such quotations are not available, the rate of exchange will
be determined in good faith by or under procedures established by the Trustees.
Securities traded over-the-counter, unlisted securities and listed securities
for which closing sale prices are not available are valued at the mean between
latest bid and asked prices or, if such bid and asked prices are not available,
at prices supplied by a pricing agent selected by Wright, unless such prices are
<PAGE>
deemed by Wright not to be representative of market values at the close of
business of the NYSE. Securities for which market quotations are unavailable,
restricted securities, securities for which prices are deemed by Wright not to
be representative of market values, and other assets will be appraised at their
fair value as determined in good faith according to guidelines established by
the Trustees. Short-term obligations with remaining maturities of sixty days or
less are valued at amortized cost, which approximates market value. Options
traded on exchanges and over-the-counter will be valued at the last current
sales price on the market where such option is principally traded.
Over-the-counter and listed options for which a last sales price is not
available will be valued on the basis of quotations supplied by dealers who
regularly trade such options or if such quotations are not available or deemed
by Wright not to be representative of market values, at fair value.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of business
on each business day in New York (i.e., a day on which the NYSE is open for
trading). In addition, European or Far Eastern securities trading generally or
in a particular country or countries may not take place on all business days in
New York. Furthermore, trading takes place in Japanese markets on certain
Saturdays and in various foreign markets on days which are not business days in
New York and on which WIBC Fund's net asset value is not calculated. Such
calculation does not take place contemporaneously with the determination of the
prices of the majority of the portfolio securities used in such calculation.
Events affecting the values of portfolio securities that occur between the time
their prices are determined and the close of the NYSE will not be reflected in
WIBC Fund's calculation of net asset value unless Wright deems that the
particular event would materially affect net asset value, in which case an
adjustment will be made.
HOW TO BUY SHARES
Shares of each Fund are sold without a sales charge at the net asset value
next determined after the receipt of a purchase order as described below. The
minimum initial investment per Fund is $1,000, although this will be waived for
investments in 401(k) tax-sheltered retirement plans or for Bank Draft Investing
accounts, which may be established with an investment of $50 or more. There is
no minimum amount required for subsequent purchases, except that subsequent
investments for Bank Draft Investing accounts must be at least $50. Each Fund
reserves the right to reject any order for the purchase of its shares or to
limit or suspend, without prior notice, the offering of its shares.
Shares of Wright U.S. Treasury Money Market Fund purchased before 3:00 p.m.
will earn interest for that day. Shares purchased between 3:00 p.m. and 4:00
p.m. will start to earn interest the next business day.
Shares of each Fund may be purchased or redeemed through an investment
dealer, bank or other institution ("Authorized Dealer"). Charges may be imposed
by the institution for its services. Any such charges could constitute a
material portion of a smaller account. Shares may be purchased or redeemed
directly from or with each Fund without imposition of any charges other than
those described in this Prospectus.
BY WIRE: Investors may purchase shares by transmitting immediately
available funds (Federal Funds) by wire to:
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA
ABA: 011001234
Account 081345
Further Credit: (Name of Fund)
(Include your Fund account number)
Initial purchase -- Upon making an initial investment by wire, an investor
must first telephone the Funds' Order Department at (800) 225-6265, ext. 3, to
advise of the action and to be assigned an account number. If this telephone
call is not made, it may not be possible to process the order promptly. In
addition, an Account Instructions form, which is available through WISDI, should
be promptly forwarded to First Data Investor Services Group (the "Transfer
Agent") at the following address:
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
Subsequent Purchases -- Additional investments may be made at any time
through the wire procedure described above. The Funds' Order Department must be
immediately advised by telephone at (800) 225-6265, ext. 3, of each transmission
of funds by wire.
<PAGE>
BY MAIL: Initial Purchases -- The Account Instructions form available
through WISDI should be completed by an investor, signed and mailed with a
check, Federal Reserve draft, or other negotiable bank draft, drawn on a U.S.
bank and payable in U.S. dollars, to the order of the Fund whose shares are
being purchased, as the case may be, and mailed to the Transfer Agent at the
above address.
Subsequent Purchases -- Additional purchases may be made at any time by an
investor by check, Federal Reserve draft, or other negotiable bank draft, drawn
on a U.S. bank and payable in U.S. dollars, to the order of the relevant Fund at
the above address. The sub-account, if any, to which the subsequent purchase is
to be credited should be identified together with the sub-account number and,
unless otherwise agreed, the name of the sub-account.
BANK DRAFT INVESTING -- FOR REGULAR SHARE ACCUMULATION: Cash investments of
$50 or more may be made through the shareholder's checking account via bank
draft, automated clearing house (ACH) or electronic funds transfer (EFT) each
month or quarter. The $1,000 minimum initial investment and small account
redemption policy are waived for Bank Draft Investing accounts.
Transactions in money market instruments normally require immediate
settlement in Federal Funds. Accordingly, purchase orders for Wright U.S.
Treasury Money Market Fund will be executed at the net asset value next
determined (see "How the Funds Value their Shares") after their receipt by the
Fund only if the Fund has received payment in cash or in Federal Funds. If
remitted in other than the foregoing manner, such as by money order or personal
check, purchase orders will be executed as of the close of business on the
second Boston business day after receipt. Information on how to procure a
Federal Reserve draft or to transmit Federal Funds by wire is available at
banks. A bank may charge for these services.
PURCHASE THROUGH EXCHANGE OF SECURITIES: Investors wishing to purchase
shares of a Fund other than the WTMM through an exchange of portfolio securities
should contact WISDI to determine the acceptability of the securities and make
the proper arrangements. Shares of a Fund may be purchased, in whole or in part,
by delivering to the Fund's custodian securities that meet the investment
objective and policies of the Fund, have readily ascertainable market prices and
quotations and which are otherwise acceptable to the Investment Adviser and the
Fund. The Fund will only accept securities in exchange for shares for investment
purposes and not as agent for the shareholders with a view to a resale of such
securities. The Investment Adviser will also require that equity securities
presented for exchange be listed on the New York Stock Exchange, American Stock
Exchange or NASDAQ. The Investment Adviser, WISDI and the Funds reserve the
right to reject all or any part of the securities offered in exchange for shares
of a Fund. An investor who wishes to make an exchange should furnish to WISDI a
list with a full and exact description of all of the securities which he
proposes to deliver. WISDI or the Investment Adviser will specify those
securities which the Fund is prepared to accept and will provide the investor
with the necessary forms to be completed and signed by the investor. The
investor should then send the securities, in proper form for transfer, with the
necessary forms to the Fund's custodian and certify that there are no legal or
contractual restrictions on the free transfer and sale of the securities.
Exchanged securities will be valued at their fair market value as of the date
that the securities in proper form for transfer and the accompanying purchase
order are both received by the Trust, using the procedures for valuing portfolio
securities as described under "How the Funds Value their Shares." However, if
the NYSE or appropriate foreign stock exchange is not open for unrestricted
trading on such date, such valuation shall be on the next day on which the NYSE
is so open. The net asset value used for purposes of pricing shares sold under
the exchange program will be the net asset value next determined following the
receipt of both the securities offered in exchange and the accompanying purchase
order. Securities to be exchanged must have a minimum aggregate value of $5,000.
An exchange of securities is a taxable transaction which may result in
realization of a gain or loss for federal and state income tax purposes.
HOW SHAREHOLDER ACCOUNTS ARE MAINTAINED
Upon the initial purchase of a Fund's shares, an account will be opened for
the account or sub-account of an investor. Subsequent investments may be made at
any time by mail to the Transfer Agent or by wire, as noted above. Distributions
paid in additional shares are credited to the accounts. Confirmation statements
indicating total shares of each Fund owned in the account or each sub-account
will be mailed to investors quarterly, and at the time of each purchase or
redemption. The issuance of shares will be recorded on the books of the relevant
Fund. The Trusts do not issue share certificates. Consolidated statements
showing holdings in each Fund are prepared and mailed quarterly. Monthly
statements are available on request.
<PAGE>
DISTRIBUTIONS BY THE FUNDS
Any net capital gains realized from the sale of securities or other
transactions in a Fund's portfolio (reduced by any available capital loss carry
forwards from prior years) will be paid at least annually, shortly before or
after the close of the Fund's fiscal year. WBC, WJBC and WQC intend to pay
dividends from net investment income quarterly. WIBC intends to pay dividends
annually. WUSTB, WNTB, WTRB, WCIF and WTMM will declare any net investment
income as dividends daily and will pay them monthly. Net investment income will
include interest accrued and discount earned, if any, less any accrued estimated
expenses on the assets of the Funds. Unless shareholders instruct otherwise, all
distributions and dividends will be automatically invested in additional shares
of the same Fund. Equity Fund distributions will be reinvested as of the record
date. Income Fund and WTMM distributions will be reinvested on the payment date.
Alternatively, shareholders may reinvest capital gain distributions and direct
that dividends be paid in cash or that both dividends and capital gain
distributions be paid in cash.
TAXES
Each Fund is treated as a separate entity for federal income tax purposes
under the Internal Revenue Code of 1986, as amended (the "Code"). Each Fund has
qualified and elected to be treated as a regulated investment company for
federal income tax purposes and intends to continue to qualify as such. In order
to so qualify, each Fund must meet certain requirements with respect to sources
of income, diversification of assets, and distributions to shareholders. The
Funds do not pay federal income or excise taxes to the extent that they
distribute to their shareholders all of their net investment income and net
realized capital gains in accordance with the timing requirements of the Code.
In addition, none of the Funds will be subject to income or corporate excise or
franchise taxes in Massachusetts as long as it qualifies as a regulated
investment company under the Code.
In order to avoid federal excise tax, the Code requires that each Fund
distribute (or be deemed to have distributed) by December 31 of each calendar
year at least 98% of its ordinary income for such year, at least 98% of the
excess of its realized capital gains over its realized capital losses (computed
on the basis of the one-year period ending on October 31 of such year, after
reduction by any available capital loss carryforwards) and 100% of any income
and capital gains from the prior year (as previously computed) that was not paid
out during such year and on which the Fund paid no federal income tax.
As of December 31, 1995, the following Funds, for federal income tax
purposes, had in the aggregate capital loss carryovers of $3,217,931 (WIBC),
$434,300 (WUSTB), $21,682,260 (WNTB), $1,472,119 (WTRB) and $914,103 (WCIF),
which in varying amounts expire beteween the years 1996 and 2003, which will
reduce each of the aforementioned Fund's taxable income arising from future net
realized gain on investments, if any, to the extent used prior to their
expiration dates and otherwise permitted by the Code, and thus will reduce the
amount of the distribution to shareholders which would otherwise be necessary to
relieve each of the aforementioned Funds of liability for federal income tax.
Distributions of net investment income and the excess of net short-term
capital gain over net long-term capital loss and certain foreign currency gains
are taxable to shareholders as ordinary income, whether received in cash or
reinvested in additional shares.
A portion of distributions of net investment income made by WBC, WJBC and
WQC which are derived from dividends may qualify for the dividends-received
deduction for corporations. The dividends-received deduction is reduced to the
extent the shares with respect to which the dividends are received are treated
as debt-financed under the Code and is eliminated if the shares are deemed to
have been held for less than a minimum period, generally 46 days. Receipt of
distributions qualifying for the deduction may result in liability for the
alternative minimum tax and/or reduction of the tax basis of the corporate
shareholder's shares.
Since it is anticipated that virtually all of the ordinary income from each
of the Income Funds will be derived from interest income rather than dividends,
it is unlikely that any portion of the dividends paid by any of the Income Funds
will be eligible for the dividends received deduction for corporations.
Distributions of the excess of each Fund's net long-term capital gain over
its net short-term capital loss are taxable as long-term capital gains whether
received in cash or reinvested in additional shares, regardless of how long the
shareholder has held the Fund shares. The dividends received deduction does not
apply to distributions of such
<PAGE>
gains. Distributions on Equity Fund shares shortly after their purchase,
although they may be attributable to taxable income and/or capital gains that
had been realized but not distributed at the time of purchase and therefore may
be in effect a return of a portion of the purchase price, are generally subject
to federal income tax.
The WIBC Fund's transactions in certain foreign currency options, futures
or forward contracts will be subject to special tax rules, the effect of which
may be to accelerate income to the Fund, defer Fund losses, cause adjustments in
the holding periods of Fund securities and convert capital gains or losses into
ordinary gains or losses. These rules may therefore affect the amount, timing
and character of the Fund's distributions to shareholders. In order to qualify
as a regulated investment company for federal income tax purposes, the Fund must
derive less than 30% of its annual gross income from gross gains from the sale
or other disposition of securities and certain other investments held for less
than three months and will limit its activities in forward contracts and other
investments to the extent necessary to comply with this requirement.
The WIBC Fund may be subject to foreign withholding or other foreign taxes
with respect to income (possibly including, in some cases, capital gains)
derived from securities of foreign issuers. These taxes may be reduced or
eliminated under the terms of an applicable U.S. income tax treaty. In any
taxable year in which more than 50% of the value of the Fund's assets at the
close of such taxable year consists of stocks or securities of foreign
corporations, the Fund may elect to pass through to its shareholders foreign tax
credits or deductions with respect to foreign income or other qualified foreign
taxes paid by the Fund. In such case, shareholders will be required to include
in gross income their pro rata portion of such taxes and will be eligible to
claim a credit (or if they itemize their deductions, a deduction) with respect
to such taxes, subject to certain conditions and limitations under the Code.
Certain foreign exchange gains and losses realized by the Fund will be treated
as ordinary income and losses. Certain uses of foreign currency and related
forward contracts and investment by the Fund in the stock of certain "passive
foreign investment companies" may be limited or in the latter case a tax
election may be made, if available, in order to avoid imposition of a tax on the
Fund.
Each Equity Fund follows the accounting practice known as equalization,
which may affect the amount, timing and character of distributions.
Distributions made by the Funds will generally be subject to state and
local income taxes. A state income (and possibly local income and/or intangible
property) tax exemption is generally available to the extent a Fund's
distributions are derived from interest on (or, in the case of intangible
property taxes, the value of its assets is attributable to) certain U.S.
Government obligations, provided in some states that certain thresholds for
holdings of such obligations and/or reporting requirements are satisfied. A
report will be sent to shareholders annually with the percentages of
distributions which are derived from such interest income.
Shareholders of each Fund that are not exempt from information reporting
requirements will receive in January information on Form 1099 to assist in
reporting the prior calendar year's distributions and, except in the case of
WTMM, redemptions (including exchanges) on federal and state income tax returns.
Dividends declared by a Fund in October, November or December of any calendar
year to shareholders of record as of a date in such a month and paid the
following January will be treated for federal income tax purposes as having been
received by shareholders on December 31 of the year in which they are declared.
Shareholders may realize a taxable gain or loss upon a redemption (including an
exchange) of shares of a Fund, except that no gain or loss will generally result
in the case of WTMM, provided that it has maintained a constant net asset value.
Any loss realized upon the redemption or exchange of shares of a Fund with a tax
holding period of six months or less will be treated as a long-term capital loss
to the extent of any distributions of long-term capital gains with respect to
such shares. All or a portion of a loss realized upon the redemption or other
disposition of Fund shares may be disallowed under "wash sale" rules to the
extent shares of the same Fund are purchased (including shares acquired by means
of reinvested dividends) within the period beginning 30 days before and ending
30 days after the date of such redemption or other disposition. Shareholders
should consult their own tax advisers with respect to the tax status of
distributions from the Funds or redemption or exchange of Fund shares in their
own states and localities.
Under Section 3406 of the Code, individuals and other nonexempt
shareholders who have not provided to a Fund their correct taxpayer
identification numbers and certain certifications required by the IRS will be
subject to backup withholding of 31% on taxable distributions made by the Funds
<PAGE>
and on proceeds of redemptions (including exchanges) of shares. In addition, a
Fund may be required to impose backup withholding if it is notified by the IRS
or a broker that the taxpayer identification number is incorrect or that backup
withholding applies because of underreporting of interest or dividend income. If
such withholding is applicable, such distributions and proceeds will be reduced
by the amount of tax required to be withheld.
Shareholders who are not United States persons should also consult their
tax advisers as to the potential application of certain U.S. taxes, including a
30% U.S. withholding tax (or withholding tax at a lower treaty rate) on amounts
treated as ordinary income distributions to them, and of foreign taxes to their
investment in the Funds.
Special tax rules apply to IRA accounts (including penalties on certain
distributions and other transactions) and to other special classes of investors,
such as tax-exempt organizations, banks or insurance companies. Investors should
consult their tax advisers for more information.
HOW TO EXCHANGE SHARES
Shares of any Fund may be exchanged for shares of any other Wright Managed
Investment Funds, including those in The Wright EquiFund Equity Trust, at net
asset value at the time of the exchange.
This exchange offer is available only in states where shares of such other
fund may be legally sold. Each exchange is subject to a minimum initial
investment of $1,000 in each fund.
The prospectus of each fund describes its investment objectives and
policies and shareholders should consider these objectives and policies
carefully before requesting an exchange.
Shareholders purchasing shares from an Authorized Dealer may effect
exchanges between the above funds through their Authorized Dealer who will
transmit information regarding the requested exchanges to the Transfer Agent.
First Data Investor Services Group makes exchanges at the next determined
net asset value after receiving a request in writing mailed to the address
provided under "How to Buy Shares."
Telephone exchanges are also accepted if the exchange involves shares
valued at less than $50,000 and on deposit with First Data Investor Services
Group and the investor has not disclaimed in writing the use of the privilege.
To effect such exchanges, call First Data Investor Services Group at (800)
262-1122 or within Massachusetts, (617) 573-9403, Monday through Friday, 9:00
a.m. to 4:00 p.m. (Eastern Time). All such telephone exchanges must be
registered in the same name(s) and with the same address and social security or
other taxpayer identification number as are registered with the fund from which
the exchange is being made. Neither the Funds, the Principal Underwriter nor
First Data Investor Services Group will be responsible for the authenticity of
exchange instructions received by telephone, provided that reasonable procedures
have been followed to confirm that instructions communicated are genuine, and if
such procedures are not followed, the Funds, the Principal Underwriter or First
Data Investor Services Group may be liable for any losses due to unauthorized or
fraudulent telephone instructions. Telephone instructions will be tape recorded.
In times of drastic economic or market changes, a telephone exchange may be
difficult to implement.
Generally, shareholders will be limited to four telephone exchange
round-trips per year and a Fund may refuse requests for telephone exchanges in
excess of four round-trips (a round-trip being the exchange out of the Fund into
another Wright Fund, and then back to the Fund). The Funds believe that use of
the exchange privilege by investors utilizing market-timing strategies adversely
affects the Funds. Therefore, a Fund generally will not honor requests for
exchanges, including telephone exchanges, by shareholders identified by a Fund
as "market-timers."
When calling to make a telephone exchange, shareholders should have their
account number and social security or other taxpayer identification numbers.
Additional documentation may be required for exchange requests if shares
are registered in the name of a corporation, partnership or fiduciary. Any
exchange request may be rejected by a Fund or the Principal Underwriter at its
discretion. The exchange privilege may be changed or discontinued without
penalty at any time. Shareholders will be given sixty (60) days' notice prior to
any termination or material amendment of the exchange privilege. Contact the
Transfer Agent, First Data Investor Services Group, for additional information
concerning the exchange privilege.
<PAGE>
Shareholders should be aware that for federal and state income tax
purposes, an exchange is a taxable transaction which may result in recognition
of a gain or loss, although no gain or loss will generally result from an
exchange out of WTMM if it maintains a constant net asset value.
HOW TO REDEEM OR SELL SHARES
Shares of a Fund will be redeemed at the net asset value next determined
after receipt of a redemption request in good order as described below. Proceeds
will be mailed within seven days of such receipt. However, at various times a
Fund may be requested to redeem shares for which it has not yet received good
payment. If the shares to be redeemed represent an investment made by check,
each Fund may delay payment of redemption proceeds until the check has been
collected which, depending upon the location of the issuing bank, could take up
to 15 days. For federal and state income tax purposes, a redemption of shares is
a taxable transaction and may result in recognition of a gain or loss, although
no gain or loss will generally result from a redemption of shares of WTMM if it
maintains a constant net asset value.
THROUGH AUTHORIZED DEALERS: Shareholders using Authorized Dealers may
redeem shares through such Dealers.
BY TELEPHONE: All shareholders are automatically eligible for the telephone
redemption privilege, unless the account application indicates otherwise.
Shareholders may effect a redemption by calling the Funds' Order Department at
(800) 225-6265, ext. 3 (8:30 a.m. to 4:00 p.m. Eastern time). In times when the
volume of telephone redemptions is heavy, additional phone lines will
automatically be added by the Funds. However, in times of drastic economic or
market changes, a telephone redemption may be difficult to implement. When
calling to make a telephone redemption, shareholders should have available their
account number. A telephone redemption will be made at that day's net asset
value, provided that the telephone redemption request is received prior to 4:00
p.m. on that day. Telephone redemption requests received after 4:00 p.m. will be
effected at the net asset value determined for the next trading day. Payment
will be made by check to the address of record or, if an appropriate election
was made on the application form, by wire transfer to the bank account or
address designated and normally, as indicated above, within one business day
after receipt of the redemption request in good order.
If a telephone redemption request for shares of Wright U.S. Treasury Money
Market Fund is received prior to 3:00 p.m. and the wire transfer election was
made, proceeds will be wired the same day to the shareholders account and the
shares redeemed will not be entitled to that day's dividend. A daily dividend
will be paid on shares when the redemption request is received after 3:00 p.m.
but the proceeds will not be wired until the following business day.
Trust Departments may make redemptions and deposit the proceeds in checking
or other accounts of clients, as specified in instructions furnished to the
Funds at the time of initially purchasing Fund shares. Neither the Funds, the
Principal Underwriter nor First Data Investor Services Group will be responsible
for the authenticity of redemption instructions received by telephone, provided
that reasonable procedures have been followed to confirm that instructions
communicated are genuine, and if such procedures are not followed, the Funds,
the Principal Underwriter or First Data Investor Services Group may be liable
for any losses due to unauthorized or fraudulent telephone instructions.
Also, shareholders may effect a redemption by calling the Funds' Transfer
Agent, First Data Investor Services Group, at (800) 262-1122 (8:30 a.m. to 4:00
p.m. Eastern time) if the redemption involves shares valued at less than $50,000
and on deposit with First Data Investor Services Group. Payment will be made by
check to the address of record. Telephone instructions will be tape recorded.
BY MAIL: A shareholder may also redeem all or any number of shares at any
time by mail by delivering the request with a stock power to the Transfer Agent,
First Data Investor Services Group, Wright Managed Investment Funds, P.O. Box
1559, Boston, Massachusetts 02104. As in the case of telephone requests,
payments will normally be made within one business day after receipt of the
redemption request in good order. Good order means that written redemption
requests or stock powers must be endorsed by the record owner(s) exactly as the
shares are registered and the signature(s) must be guaranteed by a member of
either the Securities Transfer Association's STAMP program or the New York Stock
Exchange's Medallion Signature Program, or certain banks, savings and loan
institutions, credit unions, securities dealers, securities exchanges, clearing
agencies and registered securities associations as required by a regulation of
the Securities and Exchange Commission and acceptable to First Data Investor
Services Group. In addition, in some cases, good order may require the
furnishing of
<PAGE>
additional documents, such as where shares are registered in the
name of a corporation, partnership or fiduciary.
BY CHECK: Shareholders of Wright U.S. Treasury Money Market Fund may
appoint Boston Safe Deposit & Trust Company ("Boston Safe") their agent and may
request that Boston Safe provide them with special forms of checks drawn on
Boston Safe. These checks may be made payable by the shareholder to the order of
any person in any amount of $500 or more. When a check is presented to Boston
Safe for payment, the number of full and fractional shares required to cover the
amount of the check will be redeemed from the shareholder's account by Boston
Safe as the shareholder's agent. Through this procedure the shareholder will
continue to be entitled to distributions paid on his shares up to the time the
check is presented to Boston Safe for payment. If the amount of the check is
greater than the value of the shares held in the shareholder's account, for
which the Fund has collected payment, the check will be returned and the
shareholder may be subject to extra charges. Forms required to set up this
service may be obtained from the Principal Underwriter. Shareholders will be
required to execute signature cards and will be subject to Boston Safe's rules
and regulations governing such checking accounts. There is no charge to
shareholders for this service. This service may be terminated or suspended at
any time by the Fund or Boston Safe.
The right to redeem shares of a Fund and to receive payment therefor may be
suspended at times (a) when the securities markets are closed, other than
customary weekend and holiday closings, (b) when trading is restricted for any
reason, (c) when an emergency exists as a result of which disposal by the Fund
of securities owned by it is not reasonably practicable or it is not reasonably
practicable for the Fund fairly to determine the value of its net assets, or (d)
when the Securities and Exchange Commission by order permits a suspension of the
right of redemption or a postponement of the date of payment or redemption.
Although the Funds normally intend to redeem shares in cash, each Fund,
subject to compliance with applicable regulations, reserves the right to deliver
the proceeds of redemptions in the form of portfolio securities if deemed
advisable by the Trustees. The value of any such portfolio securities
distributed will be determined in the manner described under "How the Funds
Value their Shares" and may be more or less than a shareholder's cost depending
upon the market value of portfolio securities at the time the redemption is
made. If the amount of a Fund's shares to be redeemed for a shareholder or a
sub-account within a 90-day period exceeds the lesser of $250,000 or 1% of the
aggregate net asset value of the Fund at the beginning of such period, such Fund
reserves the right to deliver all or any part of such excess in the form of
portfolio securities. If portfolio securities were distributed in lieu of cash,
the shareholder would normally incur transaction costs upon the disposition of
any such securities.
Due to the relatively high cost of maintaining small accounts, each Fund
reserves the right to redeem fully at net asset value any Fund account which at
any time, due to redemption or transfer, amounts to less than $1,000 for that
Fund; any shareholder who makes a partial redemption which reduces his account
in a Fund to less than $1,000 would be subject to the Fund's right to redeem
such account. Prior to the execution of any such redemption, notice will be sent
and the shareholder will be allowed 60 days from the date of notice to make an
additional investment to meet the required minimum of $1,000 per Fund. However,
no such redemption would be required by the Fund if the cause of the low account
balance was a reduction in the net asset value of Fund shares.
PERFORMANCE INFORMATION
From time to time a Fund may publish its yield and/or average annual total
return in advertisements and communications to shareholders. The current yield
for a Fund (other than Wright U.S. Treasury Money Market Fund) will be
calculated by dividing the net investment income per share during a recent 30
day period by the maximum offering price per share (net asset value) of a Fund
on the last day of the period. A Fund's average annual total return is
determined by computing the annual percentage change in value of $1,000 invested
at the maximum public offering price (net asset value) for specified periods
ending with the most recent calendar quarter, assuming reinvestment of all
distributions.
The yield of Wright U.S. Treasury Money Market Fund refers to the net
income generated by an investment in the Fund over a specified seven-day period.
This income is then annualized. That is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The effective yield is
<PAGE>
expressed similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed
reinvestment. Yield and effective yield for the Fund will vary based on changes
in market conditions, the level of interest rates and the level of the Fund's
expenses. From time to time, quotations of the yield and effective yield may be
included in advertisements and communications to shareholders
Investors should note that the investment results of a Fund will fluctuate
over time, and any presentation of a Fund's current yield, effective yield or
total return for any prior period should not be considered as a representation
of what an investment may earn or what an investor's yield, effective yield or
total return may be in any future period. If the expenses of a Fund were reduced
by Wright, WISDI, or Eaton Vance, the Fund's performance would be higher.
OTHER INFORMATION
The Trusts are business trusts established under Massachusetts law and are
no-load, open-end management investment companies. The Wright Managed Income
Trust was established pursuant to a Declaration of Trust dated February 17,
1983, as amended. The Wright Managed Equity Trust was established pursuant to a
Declaration of Trust dated June 17, 1982, as amended and restated December 21,
1987.
The Trusts' shares of beneficial interest have no par value. Shares of the
Trusts may be issued in two or more series or "Funds." The Wright Managed Equity
Trust currently has four Funds, and The Wright Managed Income Trust currently
has five Funds. Each Fund's shares may be issued in an unlimited number by the
Trustees of the Trust. Each share of a Fund represents an equal proportionate
beneficial interest in that Fund and, when issued and outstanding, the shares
are fully paid and non-assessable by the relevant Trust. Shareholders are
entitled to one vote for each full share held. Fractional shares may be voted in
proportion to the amount of the net asset value of a Fund which they represent.
Voting rights are not cumulative, which means that the holders of more than 50%
of the shares voting for the election of Trustees of the Trust can elect 100% of
the Trustees and, in such event, the holders of the remaining less than 50% of
the shares voting on the matter will not be able to elect any Trustees. Shares
have no preemptive or conversion rights and are freely transferable. Upon
liquidation of a Fund, shareholders are entitled to share pro rata in the net
assets of the particular Fund available for distribution to shareholders, and in
any general assets of the Trust not allocated to a particular Fund by the
Trustees.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with the Trust's by-laws, the Trustees shall continue to hold office and may
appoint successor Trustees.
The Trust's by-laws provide that no person shall serve as a Trustee if
shareholders holding two-thirds of the outstanding shares have removed him from
that office either by a written declaration filed with the Trust's custodian or
by votes cast at a meeting called for that purpose. The Trustees shall promptly
call a meeting of the shareholders for the purpose of voting upon a question of
removal of a Trustee when requested so to do by the record holders of not less
than 10 per centum of the outstanding shares.
TAX-SHELTERED RETIREMENT PLANS
The Funds are available for investment by individual retirement account
plans for individuals and their non-employed spouses, pension and profit sharing
plans for self-employed individuals, corporations and non-profit organizations,
or 401(k) tax-sheltered retirement plans. The minimum initial purchase of $1,000
for each Fund will be waived for investments in 401(k) plans.
For more information, write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call:
(800) 888-9471
<PAGE>
THE WRIGHT MANAGED
BLUE CHIP INVESTMENT FUNDS
PROSPECTUS
MAY 1, 1996
INVESTMENT ADVISER
Wright Investors' Service, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AGENT
First Data Investor Services Group
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
24 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
May 1, 1996
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
WRIGHT QUALITY CORE EQUITIES FUND
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
and
THE WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
WRIGHT U.S. TREASURY NEAR TERM FUND
WRIGHT TOTAL RETURN BOND FUND
WRIGHT CURRENT INCOME FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND
24 Federal Street
Boston, Massachusetts 02110
-------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Additional Information about the Trusts........... 2
Additional Investment Information................. 2
Investment Restrictions........................... 6
Officers and Trustees............................. 11
Control Persons and
Principal Holders of Shares.................. 13
Investment Advisory and
Administrative Services...................... 13
Custodian......................................... 15
Independent Certified Public Accountants.......... 16
Brokerage Allocation.............................. 16
Pricing of Shares................................. 17
Principal Underwriter............................. 18
Calculation of Performance and Yield Quotations... 20
Financial Statements.............................. 22
Appendix.......................................... 23
- -------------------------------------------------------------------------------
THIS COMBINED STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY IF PRECEDED OR
ACCOMPANIED BY THE CURRENT COMBINED PROSPECTUS OF THE FUNDS IN THE WRIGHT
MANAGED EQUITY TRUST AND THE WRIGHT MANAGED INCOME TRUST (THE "TRUSTS"), DATED
MAY 1, 1996, AS SUPPLEMENTED FROM TIME TO TIME, WHICH IS INCORPORATED HEREIN BY
REFERENCE. A COPY OF THE PROSPECTUS MAY BE OBTAINED WITHOUT CHARGE FROM WRIGHT
INVESTORS' SERVICE DISTRIBUTORS, INC., 1000 LAFAYETTE BOULEVARD, BRIDGEPORT,
CONNECTICUT 06604 (TELEPHONE: (800) 888-9471).
<PAGE>
ADDITIONAL INFORMATION ABOUT THE TRUSTS
Unless otherwise defined herein, capitalized terms have the meaning given
them in the Prospectus.
Each Trust is a no-load, open-end, management investment company organized
as a Massachusetts business trust. The Wright Managed Equity Trust was organized
in 1982 and has the four series described herein. The Wright Managed Income
Trust was organized in 1983 and has the five series described herein. The Trust
changed its name from The Wright Managed Bond Trust March 28, 1991. The Trusts'
series are collectively refered to as the "Funds." Each Fund is a diversified
fund.
Each Trust's Declaration of Trust may be amended with the affirmative vote
of a majority of the outstanding shares of the Trust or, if the interests of a
particular Fund are affected, a majority of such Fund's outstanding shares. The
Trustees are authorized to make amendments to each Declaration of Trust that do
not have a material adverse effect on the interests of shareholders. Each Trust
may be terminated (i) upon the sale of the Trust's assets to another diversified
open-end management investment company, if approved by the holders of two-thirds
of the outstanding shares of the Trust, except that if the Trustees recommend
such sale of assets, the approval by the vote of a majority of the Trust's
outstanding shares will be sufficient, or (ii) upon liquidation and distribution
of the assets of the Trust, if approved by a majority of its Trustees or by the
vote of a majority of the Trust's outstanding shares. If not so terminated, each
Trust may continue indefinitely.
Each Trust's Declaration of Trust further provides that the Trustees will
not be liable for errors of judgment or mistakes of fact or law; however,
nothing in either Declaration of Trust protects a Trustee against any liability
to which he would otherwise be subject by reason of willful misfeasance, bad
faith, gross negligence, or reckless disregard of the duties involved in the
conduct of his office.
The Trusts are organizations of the type commonly known as "Massachusetts
business trusts." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the trust. Each Trust's Declaration of Trust contains an express
disclaimer of shareholder liability in connection with the Trust property or the
acts, obligations or affairs of the Trust. Each Declaration of Trust also
provides for indemnification out of the Trust property of any shareholder held
personally liable for the claims and liabilities to which a shareholder may
become subject by reason of being or having been a shareholder. Thus, the risk
of a shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which a Trust itself would be unable to meet its
obligations. The risk of any shareholder incurring any liability for the
obligations of a Trust is extremely remote.
ADDITIONAL INVESTMENT INFORMATION
DESCRIPTION OF INVESTMENTS
U.S. GOVERNMENT, AGENCY AND INSTRUMENTALITY OBLIGATIONS -- U.S. Government
obligations are issued by the Treasury and include bills, certificates of
indebtedness, notes, and bonds. Agencies and instrumentalities of the U.S.
Government are established under the authority of an act of Congress and
include, but are not limited to, the Government National Mortgage Association,
the Tennessee Valley Authority, the Bank for Cooperatives, the Farmers Home
Administration, Federal Home Loan Banks, Federal Intermediate Credit Banks,
Federal Land Banks, and the Federal National Mortgage Association.
REPURCHASE AGREEMENTS -- involve purchase of debt securities of the U.S.
Treasury or a federal agency, federal instrumentality or federally created
corporation. At the same time a Fund purchases the security, it resells it to
the vendor (a member bank of the Federal Reserve System or recognized securities
dealer), and is obligated to redeliver the security to the vendor on an
agreed-upon date in the future. The resale price is in excess of the purchase
price and reflects an agreed-upon market rate unrelated to the coupon rate on
the purchased security. Such transactions
<PAGE>
afford an opportunity for a Fund to earn a return on cash which is only
temporarily available. A Fund's risk is the ability of the vendor to pay an
agreed-upon sum upon the delivery date, and the Trust believes the risk is
limited to the difference between the market value of the security and the
repurchase price provided for in the repurchase agreement. However, bankruptcy
or insolvency proceedings affecting the vendor of the security which is subject
to the repurchase agreement, prior to the repurchase, may result in a delay in a
Fund being able to resell the security.
In all cases when entering into repurchase agreements with other than
FDIC-insured depository institutions, the Funds will take physical possession of
the underlying collateral security, or will receive written confirmation of the
purchase of the collateral security and a custodial or safekeeping receipt from
a third party under a written bailment for hire contract, or will be the
recorded owner of the collateral security through the Federal Reserve Book-Entry
System.
CERTIFICATES OF DEPOSIT -- are certificates issued against funds deposited
in a bank, are for a definite period of time, earn a specified rate of return,
and are normally negotiable.
BANKERS' ACCEPTANCES -- are short-term credit instruments used to finance
the import, export, transfer or storage of goods. They are termed "accepted"
when a bank guarantees their payment at maturity.
COMMERCIAL PAPER -- refers to promissory notes issued by corporations in
order to finance their short-term credit needs.
FINANCE COMPANY PAPER -- refers to promissory notes issued by finance
companies in order to finance their short- term credit needs.
CORPORATE OBLIGATIONS -- include bonds and notes issued by corporations in
order to finance longer-term credit needs.
FOREIGN SECURITIES -- Wright International Blue Chip Equities Fund may
invest in foreign securities. Investing in securities of foreign governments or
securities issued by companies whose principal business activities are outside
the United States may involve significant risks not associated with domestic
investments. It is anticipated that in most cases, the best available market for
foreign securities will be on exchanges or in over-the-counter markets located
outside the U.S. Foreign stock markets, while growing in volume and
sophistication, are generally not as developed as those in the U.S. Securities
of some foreign issuers (particularly those located in developing countries) may
be less liquid and more volatile than securities of comparable U.S. companies.
In addition, foreign brokerage commissions are generally higher than commissions
on securities traded in the U.S. and may be non-negotiable. In general, there is
less overall governmental supervision and regulation of securities exchanges,
brokers and listed companies than in the U.S.
The limited liquidity of certain foreign markets in which the Fund may
invest may affect the Fund's ability to accurately value its assets invested in
such market. In addition, the settlement systems of certain foreign countries
are less developed than the U.S., which may impede the Fund's ability to effect
portfolio transactions. Consider also that there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing and financial
reporting requirements comparable to those applicable to domestic issuers.
Investments in foreign securities also involve the risk of possible adverse
changes in exchange control regulations, expropriation or confiscatory taxation,
limitation on removal of funds or other assets of the Fund, political or
financial instability or diplomatic and other developments which could affect
such investments. Further, economies of particular countries or areas of the
world may differ favorably or unfavorably from the economy of the U.S.
FOREIGN CURRENCY EXCHANGE TRANSACTIONS. The Fund may engage in foreign
currency exchange transactions. Investments in securities of foreign governments
and companies whose principal business activities are located outside of the
United States will frequently involve currencies of foreign countries. In
addition, assets of the Fund may temporarily be held in bank deposits in foreign
currencies during the completion of investment programs. Therefore, the value of
<PAGE>
the Fund's assets, as measured in U.S. dollars, may be affected favorably or
unfavorably by changes in foreign currency exchange rates and exchange control
regulations. Although the Fund values its assets daily in U.S. dollars, the Fund
does not intend to convert its holdings of foreign currencies into U.S. dollars
on a daily basis. The Fund may conduct its foreign currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market. The Fund will convert currency on a spot basis
from time to time and will incur costs in connection with such currency
conversion. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference (the "spread")
between the prices at which they are buying and selling various currencies.
Thus, a dealer may offer to sell a foreign currency to the Fund at one rate,
while offering a lesser rate of exchange should the Fund desire to resell that
currency to the dealer. The Fund does not intend to speculate in foreign
currency exchange rates.
As an alternative to spot transactions, the Fund may enter into contracts
to purchase or sell foreign currencies at a future date ("forward" contracts) or
purchase currency call or put options. A forward contract involves an obligation
to purchase or sell a specific currency at a future date and price fixed by
agreement between the parties at the time of entering into the contract. These
contracts are traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers. A forward contract
generally involves no deposit requirement and no commissions are charged at any
stage for trades. The Fund intends to enter into such contracts only on net
terms. The purchase of a put or call option is an alternative to the purchase or
sale of forward contracts and will be used if the option premiums are less then
those in the forward contract market.
The Fund may enter into forward contracts only under two circumstances.
First, when the Fund enters into a contract for the purchase or sale of a
security quoted or dominated in a foreign currency, it may desire to "lock in"
the U.S. dollar price of the security. This is accomplished by entering into a
forward contract for the purchase or sale, for a fixed amount of U.S. dollars,
of the amount of foreign currency involved in the underlying security
transaction ("transaction hedging"). Such forward contract transactions will
enable the Fund to protect itself against a possible loss resulting from an
adverse change in the relationship between the U.S. dollar and the subject
foreign currency during the period between the date the security is purchased or
sold and the date of payment for the security.
Second, when the Fund's investment adviser believes that the currency of a
particular foreign country may suffer a substantial decline against the U.S.
dollar, the Fund may enter into a forward contract to sell, for a fixed amount
of U.S. dollars, the amount of foreign currency approximating the value of some
or all of the securities quoted or denominated in such foreign currency. The
precise matching of the forward contract amounts and the value of the securities
involved will not generally be possible. The future value of such securities in
foreign currencies will change as a consequence of fluctuations in the market
value of those securities between the date the forward contract is entered into
and the date it matures. The projection of currency exchange rates and the
implementation of a short-term hedging strategy are highly uncertain. As an
operating policy, the Fund does not intend to enter into forward contracts for
such hedging purposes on a regular or continuous basis, and will not do so if,
as a result, more than 50% of the value of the Fund's total assets would be
committed to the consummation of such contracts. The Fund will also not enter
into such forward contracts or maintain a net exposure to such contracts if the
contracts would obligate the Fund to deliver an amount of foreign currency in
excess of the value of the Fund's securities or other assets denominated in that
currency.
The Fund's custodian will place cash or liquid, high-grade debt securities
in a segregated account. The amount of such segregated assets will be at least
equal to the value of the Fund's total assets committed to the consummation of
forward contracts involving the purchase of forward currency. If the value of
the securities placed in the segregated account declines, additional cash or
securities will be placed in the account on a daily basis so that the value of
the amount will equal the amount of the Fund's commitments with respect to such
contracts.
<PAGE>
The Fund generally will not enter into a forward contract with a term of
greater than one year. At the maturity of a forward contract, the Fund may elect
to sell the portfolio security and make delivery of the foreign currency.
Alternatively, the Fund may retain the security and terminate its contractual
obligation to deliver the foreign currency by purchasing an identical offsetting
contract from the same currency trader.
It is impossible to forecast with precision the market value of portfolio
securities at the expiration of a forward contract. Accordingly, it may be
necessary for the Fund to purchase additional foreign currency on the spot
market (and bear the expense of such purchase) if the Fund intends to sell the
security and the market value of the security is less than the amount of foreign
currency that the Fund is obligated to deliver. Conversely, it may be necessary
to sell on the spot market some of the foreign currency received upon the sale
of the portfolio security if its market value exceeds the amount of foreign
currency that the Fund is obligated to deliver.
If the Fund retains the portfolio security and engages in an offsetting
transaction, the Fund will incur a gain or a loss (as described below) to the
extent that there has been a change in forward contract prices. If the Fund
engages in an offsetting transaction, it may subsequently enter into a new
forward contract to sell the foreign currency. Should forward contract prices
decline during the period between the date the Fund enters into a forward
contract for the sale of the foreign currency and the date it enters into an
offsetting contract for the purchase of the foreign currency, the Fund will
realize a gain to the extent that the price of the currency it has agreed to
sell exceeds the price of the currency it has agreed to purchase. Should forward
contract prices increase, the Fund will suffer a loss to the extent that the
price of the currency it has agreed to purchase exceeds the price of the
currency it has agreed to sell.
The Fund will not speculate in forward contracts and will limit its
dealings in such contracts to the transactions described above. Of course, the
Fund is not required to enter into such transactions with respect to its
portfolio securities and will not do so unless deemed appropriate by its
investment adviser. This method of protecting the value of the Fund's securities
against a decline in the value of a currency does not eliminate fluctuations in
the underlying prices of the securities. It simply establishes a rate of
exchange which the Fund can achieve at some future time. Additionally, although
such contracts tend to minimize the risk of loss due to a decline in the value
of the hedged currency, they also tend to limit any potential gain which might
be realized if the value of such currency increases.
"WHEN ISSUED" SECURITIES -- Securities are frequently offered on a
"when-issued" basis. When so offered, the price, which is generally expressed in
terms of yield to maturity, is fixed at the time the commitment to purchase is
made, but delivery and payment for the when-issued securities may take place at
a later date. Normally, the settlement date occurs 15 to 90 days after the date
of the transaction. The payment obligation and the interest rate that will be
received on the securities are fixed at the time a Fund enters into the purchase
commitment. During the period between purchase and settlement, no payment is
made by the Fund to the issuer and no interest accrues to the Fund. To the
extent that assets of a Fund are held in cash pending the settlement of a
purchase of securities, the Fund would earn no income; however, it is the
intention that the Funds will be fully invested to the extent practicable and
subject to the policies stated above. While when-issued securities may be sold
prior to the settlement date, it is intended that such securities will be
purchased for a Fund with the purpose of actually acquiring them unless a sale
appears to be desirable for investment reasons. At the time a commitment to
purchase securities on a when-issued basis is made for a Fund, the transaction
will be recorded and the value of the security reflected in determining the
Fund's net asset value. The Trust will establish a segregated account in which a
Fund that purchases securities on a when-issued basis will maintain cash and
high-grade liquid debt securities equal in value to commitments for when-issued
securities. If the value of the securities placed in the separate account
declines, additional cash or securities will be placed in the account on a daily
<PAGE>
basis so that the value of the account will at least equal the amount of a
Fund's when-issued commitments. Such segregated securities either will mature
or, if necessary, be sold on or before the settlement date. Securities purchased
on a when-issued basis and the securities held by a Fund are subject to changes
in value based upon the public's perception of the credit worthiness of the
issuer and changes in the level of interest rates (which will generally result
in both changing in value in the same way, i.e., both experiencing appreciation
when interest rates decline and depreciation when interest rates rise).
Therefore, to the extent that a Fund remains substantially fully invested at the
same time that it has purchased securities on a when-issued basis, there will be
greater fluctuations in the market value of the Fund's net assets than if cash
were solely set aside to pay for when-issued securities.
LENDING PORTFOLIO SECURITIES
All of the Funds in the Equity Trust may seek to increase income by lending
portfolio securities to broker-dealers or other institutional borrowers. Under
present regulatory policies of the Securities and Exchange Commission, such
loans are required to be secured continuously by collateral in cash, cash
equivalents or U.S. Government securities held by the Fund's custodian and
maintained on a current basis at an amount at least equal to the market value of
the securities loaned, which will be marked to market daily. Cash equivalents
include certificates of deposit, commercial paper and other short-term money
market instruments. The Fund would have the right to call a loan and obtain the
securities loaned at any time on up to five business days' notice. The Fund
would not have the right to vote any securities having voting rights during the
existence of a loan, but would call the loan in anticipation of an important
vote to be taken among holders of the securities or the giving or withholding of
their consent on a material matter affecting the investment.
A series of disciplines controls the purchase and sale of securities for
the Wright Junior Blue Chip Equities Fund. Each company is reviewed on a
continuous basis by Wright's Investment Committee in order to assure that it
continues to meet all of the required characteristics of investment quality,
financial strength, profitability and stability and growth. These disciplines
are believed to limit the financial risk which is sometimes associated with
investment in smaller companies. However, somewhat higher volatility of market
pricing and greater variability of individual stock investment returns can be
expected in this Fund as compared to the Wright Selected Blue Chip Equities
Fund, which is invested in larger companies.
INVESTMENT RESTRICTIONS
The following investment restrictions have been adopted by each Fund and
may be changed as to a Fund only by the vote of a majority of the Fund's
outstanding voting securities, which as used in this Statement of Additional
Information means the lesser of (a) 67% of the shares of the Fund if the holders
of more than 50% of the shares are present or represented at the meeting or (b)
more than 50% of the shares of the Fund. Accordingly, the Trusts may not:
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
WRIGHT QUALITY CORE EQUITIES FUND
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(1) Borrow money in excess of 1/3 of the current market value of the net
assets of any Fund (excluding the amount borrowed) and then only if
such borrowing is incurred as a temporary measure for extraordinary or
emergency purposes or to facilitate the orderly sale of portfolio
securities to accommodate redemption requests; or issue any securities
of a Fund other than its shares of beneficial interest except as
appropriate to evidence indebtedness which the Fund is permitted to
incur. To the extent that a Fund purchases additional portfolio
securities while such borrowings are outstanding, that particular Fund
may be considered to be leveraging its assets, which entails the risks
<PAGE>
that the costs of borrowing may exceed the return from the securities
purchased. (The Trust anticipates paying interest on borrowed money at
rates comparable to a Fund's yield and the Trust has no intention of
attempting to increase any Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate its assets to an extent greater than
1/3 of the total assets of a Fund taken at market;
(3) Invest more than 5% of a Fund's total assets taken at current market
value in the securities of any one issuer or allow a Fund to purchase
more than 10% of the voting securities of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Trust or its
manager, investment adviser or administrator who own individually more
than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin or make short sales except sales against
the box, write or purchase or sell any put options, or purchase
warrants;
(6) Buy or sell real estate, commodities, or commodity contracts unless
acquired as a result of ownership of securities;
(7) Purchase any securities which would cause more than 25% of the market
value of a Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in obligations issued or guaranteed by the
U.S. Government or its agencies or instrumentalities;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except (i) through the loan of a portfolio security, (ii)
by entering into repurchase agreements and (iii) to the extent that the
purchase of debt instruments for a Fund in accordance with the Trust's
investment objective and policies may be deemed to be loans; or
(10) Purchase from or sell to any of its Trustees or officers, its manager,
administrator or investment adviser, its principal underwriter, if any,
or the officers or directors of said manager, administrator, investment
adviser or principal underwriter, portfolio securities of any Fund.
Although not a matter of fundamental policy, the Trust has no current
intention of entering into repurchase agreements on behalf of any Fund. In
addition, each Fund will not invest (1) more than 15% of its net assets in
illiquid investments, including repurchase agreements maturing in more than
seven days, securities that are not readily marketable and restricted securities
not eligible for resale pursuant to Rule 144A under the Securities Act of 1933
(the "1933 Act"); (2) more than 10% of its net assets in restricted securities,
excluding securities eligible for resale pursuant to Rule 144A or foreign
securities which are offered or sold outside the United States in accordance
with Regulation S under the 1933 Act; or (3) more than 15% of its net assets in
restricted securities (including those eligible for resale under Rule 144A). No
Fund will purchase oil, gas or other mineral leases or purchase partnership
interests in oil, gas or other mineral exploration or development programs.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
(1) Borrow money in excess of 1/3 of the current market value of the net
assets of the Fund (excluding the amount borrowed) and then only if
such borrowing is incurred as a temporary measure for extraordinary or
emergency purposes or to facilitate the orderly sale of portfolio
securities to accommodate redemption requests; or issue any securities
<PAGE>
of the Fund other than its shares of beneficial interest except as
appropriate to evidence indebtedness which the Fund is permitted to
incur. To the extent that the Fund purchases additional portfolio
securities while such borrowings are outstanding, the Fund may be
considered to be leveraging its assets, which entails the risks that
the costs of borrowing may exceed the return from the securities
purchased. (The Trust anticipates paying interest on borrowed money at
rates comparable to the Fund's yield and the Trust has no intention of
attempting to increase the Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate its assets to an extent greater than
1/3 of the total assets of the Fund taken at market;
(3) Invest more than 5% of the Fund's total assets taken at current market
value in the securities of any one issuer or allow the Fund to purchase
more than 10% of the voting securities of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Trust or its
manager, investment adviser or administrator who own individually more
than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin or make short sales except sales
against the box, write or purchase or sell any put options,
or purchase warrants;
(6) Buy or sell real estate, commodities, or commodity contracts unless
acquired as a result of ownership of securities; except that the Fund
may purchase and sell futures contracts on securities, indices,
currency and other financial instruments, and options on such
contracts;
(7) Purchase any securities which would cause more than 25% of the market
value of the Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in obligations issued or guaranteed by the
U.S. Government or its agencies or instrumentalities;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except (i) through the loan of a portfolio security, (ii)
by entering into repurchase agreements and (iii) to the extent that the
purchase of debt instruments for the Fund in accordance with the Fund's
investment objective and policies may be deemed to be loans; or
(10) Purchase from or sell to any of its Trustees or officers, its manager,
administrator or investment adviser, its principal underwriter, if any,
or the officers or directors of said manager, administrator, investment
adviser or principal underwriter, portfolio securities of the Fund.
The Fund has adopted the following nonfundamental policies which may be
changed without shareholder approval. The Fund will not purchase oil, gas or
other mineral leases or purchase partnership interests in oil, gas or other
mineral exploration or development programs; the Fund will not purchase or sell
real property (including limited partnership interests, but excluding readily
marketable interests in real estate investment trusts or readily marketable
securities of companies which invest in real estate); the Fund will not purchase
warrants if, as a result of such purchase, more than 5% of the Fund's net
assets, taken at current value, would be invested in warrants (and the value of
such warrants which are not listed on the New York or American Stock Exchange
may not exceed 2% of the Fund's net assets); this policy does not apply to or
restrict warrants acquired by the Fund in units or attached to securities,
inasmuch as such warrants are deemed to be without value; the Fund has no
current intention of entering into repurchase agreements; the Fund will not
invest (1) more than 15% of its net assets in illiquid investments, including
<PAGE>
repurchase agreements maturing in more than seven days, securities that are not
readily marketable and restricted securities not eligible for resale pursuant to
Rule 144A under the Securities Act of 1933 (the "1933 Act"); (2) more than 10%
of its net assets in restricted securities, excluding securities eligible for
resale pursuant to Rule 144A or foreign securities which are offered or sold
outside the United States in accordance with Regulation S under the 1933 Act; or
(3) more than 15% of its net assets in restricted securities (including those
eligible for resale under Rule 144A).
WRIGHT U.S. TREASURY FUND
WRIGHT U.S. TREASURY NEAR TERM FUND
WRIGHT TOTAL RETURN BOND FUND
WRIGHT CURRENT INCOME FUND
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(1) Borrow money in excess of 1/3 of the current market value of the net
assets of a Fund (excluding the amount borrowed) and then only if such
borrowing is incurred as a temporary measure for extraordinary or
emergency purposes or to facilitate the orderly sale of portfolio
securities to accommodate redemption requests; or issue any securities
of a Fund other than its shares of beneficial interest except as
appropriate to evidence indebtedness which the Fund is permitted to
incur. To the extent that a Fund purchases additional portfolio
securities while such borrowings are outstanding, such Fund may be
considered to be leveraging its assets, which entails the risk that the
costs of borrowing may exceed the return from the securities purchased.
(The Trust anticipates paying interest on borrowed money at rates
comparable to a Fund's yield and the Trust has no intention of
attempting to increase any Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate the assets of any Fund to an extent
greater than 1/3 of the total assets of the Fund taken
at market;
(3) Invest more than 5% of a Fund's total assets taken at current market
value in the securities of any one issuer (other than securities issued
or guaranteed by the U.S. Government or its agencies or
instrumentalities) or allow a Fund to purchase more than 10% of the
voting securities of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Trust or its
manager, investment adviser or administrator who own individually more
than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin, make short sales except sales against
the box, write or purchase or sell any put options (except with respect
to securities held by any Fund investing primarily in U.S. Government
securities or in securities the interest on which is exempt from
federal income tax), or purchase warrants;
(6) Buy or sell real estate unless acquired as a result of ownership of
securities;
(7) Purchase any securities which would cause more than 25% of the market
value of a Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities and utility
companies, gas, electric, water and telephone companies are considered
as separate industries; except that, with respect to any Fund which has
a policy of being primarily invested in obligations whose interest
income is exempt from federal income tax, the restriction shall be that
the Trust will not purchase for that Fund either (i) pollution control
and industrial development bonds issued by non-governmental users or
(ii) securities whose interest income is not exempt from federal income
tax, if in either case the purchase would cause more than 25% of the
market value of
<PAGE>
the assets of the Fund at the time of such purchase to
be invested in the securities of one or more issuers having their
principal business activities in the same industry;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except to the extent that the purchase of debt instruments
in accordance with the Trust's investment objective and policies may be
deemed to be loans; or
(10) Purchase from or sell to any of its Trustees and officers, its manager,
administrator, or investment adviser, its principal underwriter, if
any, or the officers and directors of said manager, administrator,
investment adviser or principal underwriter, portfolio securities of
any Fund.
The issuer of a pollution control or industrial development bond for
purposes of investment restriction (7) is the entity or entities whose assets
and revenues will provide the source for payment of principal and interest on
the bond. A governmental or other entity that guarantees such a bond may also be
considered the issuer of a separate security for purposes of this restriction.
In addition, while not fundamental policies, so long as the shares of any
Fund are registered for sale in Texas, and while the following are generally
required conditions of registration in that State, the Trust undertakes that
each Fund will limit its investment in warrants, valued at the lower of cost or
market, to 5% of the value of the Fund's net assets (included within that
amount, but not to exceed 2% of the value of the Fund's net assets, may be
warrants which are not listed on the New York or American Stock Exchange.
Warrants acquired by the Fund in units or attached to securities may be deemed
to be without value); no Fund will purchase oil, gas or other mineral leases or
purchase partnership interests in oil, gas or other mineral exploration or
development programs; no Fund will purchase or sell real property (including
limited partnership interests, but excluding readily marketable interests in
real estate investment trusts or readily marketable securities of companies
which invest in real estate).
WRIGHT U.S. TREASURY MONEY MARKET FUND
(1) Borrow money in excess of 1/3 of the current market value of the net
assets of the Fund (excluding the amount borrowed) and then only if
such borrowing, including reverse repurchase agreements, is incurred as
a temporary measure for extraordinary or emergency purposes or to
facilitate the orderly sale of portfolio securities to accommodate
redemption requests; or issue any securities of the Fund other than its
shares of beneficial interest except as appropriate to evidence
indebtedness which the Fund is permitted to incur. (The Trust
anticipates paying interest on borrowed money at rates comparable to
the Fund's yield and the Trust has no intention of attempting to
increase the Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate the assets of the Fund to an extent
greater than 1/3 of the total assets of the Fund taken
at market;
(3) Invest more than 5% of the Fund's total assets taken at current market
value in the securities of any one issuer (other than securities issued
or guaranteed by the U.S. Government or its agencies or
instrumentalities) or purchase more than 10% of the voting securities
of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Trust or its
manager, investment adviser or administrator who own individually more
than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin, make short sales except sales against
the box, write or purchase or sell any put options, or purchase
warrants;
(6) Buy or sell real estate unless acquired as a result of ownership of
securities;
<PAGE>
(7) Purchase any securities which would cause 25% or more of the market
value of the Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities and utility
companies, gas, electric, water and telephone companies are considered
as separate industries;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except (i) through the loan of a portfolio security, (ii)
by entering into repurchase agreements, and (iii) to the extent that
the purchase of debt instruments in accordance with the Fund's
investment objective and policies may be deemed to be loans; or
(10) Purchase from or sell to any of the Trust's Trustees and officers, its
manager, administrator, or investment adviser, its principal
underwriter, if any, or the officers and directors of said manager,
administrator, investment adviser or principal underwriter, portfolio
securities of the Fund.
In addition, while not a fundamental policy, the Fund will not enter into
repurchase agreements maturing in more than 7 days or invest in illiquid
securities if, as a result, more than 10% of the Fund's net assets would be
invested in such repurchase agreements and illiquid securities.
ALL FUNDS. If a percentage restriction contained in any Fund's investment
policies is adhered to at the time of investment, a later increase or decrease
in the percentage resulting from a change in the value of portfolio securities
or the Fund's net assets will not be considered a violation of such restriction.
OFFICERS AND TRUSTEES
The officers and Trustees of the Trusts are listed below. Except as
indicated, each individual has held the office shown or other offices in the
same company for the last five years. Those Trustees who are "interested
persons" (as defined in the 1940 Act) of the Trust, Wright, Winthrop, Eaton
Vance, Eaton Vance's wholly owned subsidiary, Boston Management and Research
("BMR"), Eaton Vance's parent company, Eaton Vance Corp. (`EVC'), or Eaton
Vance's and BMR's Trustee, Eaton Vance, Inc. ("EV"), by virtue of their
affiliation with either the Trust, Wright, Winthrop, Eaton Vance, BMR, EVC or
EV, are indicated by an asterisk (*).
PETER M. DONOVAN (53), PRESIDENT AND TRUSTEE*
President, Chief Executive Officer and Director of Wright and Winthrop; Vice
President, Treasurer and a Director of Wright Investors' Service Distributors,
Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, JR. (69), VICE PRESIDENT, SECRETARY AND TRUSTEE*
Vice President of Eaton Vance, BMR, EVC and EV and Director, EV and EVC;
Director, Trustee and officer of various investment companies managed by Eaton
Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
WINTHROP S. EMMET (85), TRUSTEE
Retired New York City Attorney at Law; Trust Officer, First National City Bank,
New York, NY (1963-1971).
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (72), TRUSTEE
President Emeritus, University of Bridgeport (1987- present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company.
Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490
A.M. MOODY III (59), VICE PRESIDENT & TRUSTEE*
Senior Vice President, Wright and Winthrop; President, Wright Investors' Service
Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
<PAGE>
LLOYD F. PIERCE (77), TRUSTEE
Retired Vice Chairman (prior to 1984 - President), People's Bank, Bridgeport,
CT; Member, Board of Trustees, People's Bank, Bridgeport, CT; Board of
Directors, Southern Connecticut Gas Company; Chairman, Board of Directors,
COSINE.
Address: 125 Gull Circle North, Daytona Beach, FL 32119
GEORGE R. PREFER (61), TRUSTEE
Retired President and Chief Executive Officer, Muller Data Corp., New York, NY
(1983-1986) (1989-1990); President and Chief Executive Officer, InvestData
Corporation, A Mellon Financial Services Company (1986-1989).
Address: 7738 Silver Bell Drive, Sarasota, FL 34241
RAYMOND VAN HOUTTE (71), TRUSTEE
President Emeritus and Counselor of The Tompkins County Trust Co., Ithaca,
NY (since January 1989); President and Chief Executive Officer, The Tompkins
County Trust Company (1973-1988); President, New York State Bankers Association
(1987-1988); Director, McGraw Housing Company, Inc., Deanco, Inc., Evaported
Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JUDITH R. CORCHARD (57), VICE PRESIDENT
Executive Vice President, Investment Management: Senior Investment Officer;
Chairman of the Investment Committee and Director of Wright and Winthrop.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
JAMES L. O'CONNOR (51), TREASURER
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
JANET E. SANDERS (60), ASSISTANT SECRETARY AND
ASSISTANT TREASURER
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
WILLIAM J. AUSTIN, JR. (44), ASSISTANT TREASURER
Assistant Vice President of Eaton Vance, BMR and EV. Officer of various
investment companies managed by Eaton Vance or BMR. Mr. Austin was elected
Assistant Treasurer of the Trust on December 18, 1991.
Address: 24 Federal Street, Boston, MA 02110
A. JOHN MURPHY (33), ASSISTANT SECRETARY
Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994;
employee of Eaton Vance since March 1993. State Regulations Supervisor, The
Boston Company (1991-1993) and Registration Specialist, Fidelity Management &
Research Co. (1986-1991). Officer of various investment companies managed by
Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trust on
June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
ERIC G. WOODBURY (38), ASSISTANT SECRETARY
Vice President of Eaton Vance, BMR and EV since February 1993; formerly,
associate attorney at Dechert, Price & Rhoads and Gaston &Snow.
Officer of various investment companies managed by Eaton Vance or BMR. Mr.
Woodbury was elected Assistant Secretary of the Trust on June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
All of the Trustees and officers hold identical positions with The Wright
Managed Equity Trust, The Wright Managed Income Trust, The Wright Managed Blue
Chip Series Trust (except Mr. Miles) and The Wright EquiFund Equity Trust. The
fees and expenses of those Trustees of the Trusts (Messrs. Emmet, Miles, Pierce,
Prefer and Van Houtte) who are not affiliated persons of the Trusts are paid by
the Funds and other series of the Trusts. They also received additional payments
from other investment companies for which Wright provides investment advisory
services. The Trustees who are interested persons of the Trusts receive no
compensation from the Trusts. The Trusts do not have a retirement plan for the
Trustees. For Trustee compensation for the fiscal year ended December 31, 1995,
see the following table.
Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the
Special Nominating Committee of the Trustees of the Trusts. The Special
Nominating Committee's function is selecting and nominating individuals to fill
vacancies, as and when they occur, in the ranks of those Trustees who are not
"interested persons" of the Trusts, Eaton Vance or Wright. The Trusts do not
have a designated audit committee since the full board performs the functions of
such committee.
<PAGE>
<TABLE>
COMPENSATION TABLE
Fiscal Year Ended December 31, 1995
THE WRIGHT MANAGED EQUITY TRUST -- 4 Funds
THE WRIGHT MANAGED INCOME TRUST -- 6 Funds
Aggregate Compensation from Estimated Total
The Wright Managed The Wright Managed Pension Benefits Annual Compensation
Trustees Equity Trust Income Trust Accrued Benefits Paid(1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Winthrop S. Emmet $1,250 $1,250 None None $5,000
Leland Miles $1,250 $1,250 None None $4,750
Lloyd F. Pierce $1,250 $1,250 None None $5,000
George R. Prefer $1,250 $1,250 None None $5,000
Raymond Van Houtte $1,250 $1,250 None None $5,000
- ----------------------------------------------------------------------------------------------------------------------
<FN>
(1) Total compensation paid includes not only service on The Wright Managed
Equity Trust (4 Funds) and The Wright Managed Income Trust (6 Funds) but also
service on other boards in the Wright Fund complex (23 Funds) for a total of 33
Funds.
</FN>
</TABLE>
CONTROL PERSONS AND
PRINCIPAL HOLDERS OF SHARES
As of March 31, 1996, the Trustees and officers of the Trusts, as a group,
owned in the aggregate less than 1% of the outstanding shares of each Fund. The
Funds' shares are held primarily by trust departments of depository institutions
and trust companies either for their own account or for the accounts of their
clients. From time to time, several of these trust departments are the record
owners of 5% or more of the outstanding shares of a particular Fund. To date,
the Funds' experience has been that such shareholders do not continuously hold
in excess of 5% or more of a Fund's outstanding shares for extended periods of
time. Should a shareholder continuously hold 5% or more of a Fund's outstanding
shares for an extended period of time (a period in excess of a year), this would
be disclosed by an amendment to this Statement of Additional Information showing
such shareholder's name, address and percentage of ownership. Upon request, the
Trusts will provide shareholders with a list of all shareholders holding 5% or
more of a Fund's outstanding shares as of a current date.
As of March 31, 1996, the number of trust departments which were the record
owners of more than 5% of the outstanding shares of the Funds in The Wright
Managed Equity Trust was as follows: WBC, 3; WJBC, 4; WQC, 4; and WIBC, 3.
On March 31, 1996, the number of trust departments which were the record
owners of more than 5% of the outstanding shares of the Funds in the Wright
Managed Income Trust was as follows: WUSTB, 5; WNTB, 4; WTRB, 4; WCIF, 4; and
WTMM, 6.
INVESTMENT ADVISORY AND
ADMINISTRATIVE SERVICES
The Trusts have engaged Winthrop to act as their investment adviser
pursuant to Investment Advisory Contracts (the "Investment Advisory Contract").
Pursuant to a service agreement effective February 1, 1996 between Winthrop and
Wright, Wright, acting under the general supervision of the Trusts' Trustees,
furnishes each Fund with investment advice and management services, as described
below. Winthrop supervises Wright's performance of this function and retains its
contractual obligations under each Investment Advisory Contract. The estate of
John Winthrop Wright may be considered a controlling person of Winthrop and
Wright by reason of its ownership of 29% of the outstanding shares of Winthrop.
Pursuant to each Investment Advisory Contract, Wright will carry out the
investment and reinvestment of the assets of the Funds, will furnish
continuously an investment program with respect to the Funds, will determine
which securities should be purchased, sold or
<PAGE>
exchanged, and will implement such determinations. Wright will furnish to
the Funds investment advice and management services, office space, equipment and
clerical personnel, and investment advisory, statistical and research
facilities. In addition, Wright has arranged for certain members of the Eaton
Vance and Wright organizations to serve without salary as officers or Trustees.
In return for these services, each Fund is obligated to pay a monthly advisory
fee calculated at the rates set forth in the Funds' current Prospectus.
Effective February 1, 1996, Winthrop will cause the Funds to pay to Wright the
entire amount of the advisory fee payable by each Fund under the Investment
Advisory Contract with Winthrop. The following table sets forth the net assets
of each Fund as at December 31, 1995 and the advisory fee earned during the
fiscal years ended December 31, 1995, 1994 and 1993.
Aggregate Advisory Fees Paid for the
Net Assets Fiscal Year Ended December 31
at 12/31/95 1995 1994 1993
- ------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WBC $217,587,944 $1,283,832 $1,169,165 $1,042,731
WJBC 25,993,458 174,577 322,161 364,034
WQC 49,134,274 235,233 332,192 $391,623
WIBC 237,175,946 1,682,897 1,394,066 609,489
THE WRIGHT MANAGED INCOME TRUST
WUSTB(1) $ 15,156,244 $ 65,539 $ 84,992 $ 122,610
WNTB 143,599,834 739,265 1,266,025 1,549,112
WTRB 122,761,602 525,335 824,625 1,054,524
WCIF 66,345,173 313,626 403,012 437,383
WTMM(2) 45,888,947 162,732 157,447 42,817
- ------------------------------------------------------------------------
(1) To enhance the net income of the Fund during the fiscal year ended December
31, 1995, Winthrop made a reduction of its advisory fee in the amount of
$17,515.
(2) To enhance the net income of the Fund, Winthrop made a reduction of its
advisory fees during each of the fiscal years ended December 31, 1995 and 1994
by $87,656 and $114,912, respectively. For the fiscal year ended December 31,
1993, Winthrop made a reduction of the full amount of its advisory fee and was
allocated a portion of expenses related to the operation of the Fund in the
amount of $21,436.
The Trusts have engaged Eaton Vance to act as the administrator for each
Fund pursuant to an Administration Agreement. For its services under the
Administration Agreement, Eaton Vance receives monthly administration fees at
the annual rates set forth in the Fund's current Prospectus. The following table
sets forth the administration fees earned for the fiscal years ended December
31, 1995, 1994 and 1993.
Administration Fees Paid
for the Fiscal Year Ended December 31
1995 1994 1993
- ------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WBC $263,811 $253,840 $242,846
WJBC 63,483 117,150 132,376
WQC 104,548 147,641 174,054
WIBC 270,853 248,916 162,531
THE WRIGHT MANAGED INCOME TRUST
WUSTB $ 16,384 $ 21,245 $ 30,653
WNTB 129,501 172,293 192,794
WTRB 110,899 136,920 156,793
WCIF 78,407 97,754 107,639
WTMM 32,543 31,490 8,585
- ------------------------------------------------------------------------
Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a
wholly owned subsidiary of Eaton Vance. Eaton Vance and BMR are both
Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The
Directors of EV are Landon T. Clay, H. Day Brigham, Jr., M. Dozier Gardner,
James B. Hawkes and Benjamin A. Rowland, Jr. The Directors of EVC consist of the
same persons and John G. L. Cabot and Ralph Z. Sorenson. Mr. Clay is chairman,
and Mr. Gardner is president and chief executive officer of EVC, Eaton Vance,
BMR and EV. All of the issued and outstanding shares of Eaton Vance and of EV
are owned by EVC. All of the issued and outstanding shares of BMR are owned by
Eaton Vance. All shares of the outstanding Voting Common Stock of EVC are
deposited in a Voting Trust which expires December 31, 1996, the Voting Trustees
of which are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. The Voting
Trustees have unrestricted voting rights for the election of Directors of EVC.
All of the outstanding voting trust receipts issued under said Voting Trust are
owned by certain of the officers of Eaton Vance and BMR who are also officers
and Directors of EVC and EV. As of March 31, 1996, Messrs. Clay, Gardner and
Hawkes each owned 24% of such voting trust receipts. Messrs. Rowland and Brigham
each owned 15% and 13%, respectively, of such voting
<PAGE>
trust receipts. Mr. Brigham is an officer and Trustee of the Trusts, and a
member of the Eaton Vance, EVC, BMR and EV organizations. Messrs. Austin,
Murphy, O'Connor and Woodbury and Ms. Sanders are officers of the Trusts and are
also members of the Eaton Vance, BMR and EV organizations. Eaton Vance will
receive the fees paid under the Administration Agreements.
EVC owns all of the stock of Energex Energy Corporation which is engaged in
oil and gas exploration and development. In addition, Eaton Vance owns all the
stock of Northeast Properties, Inc., which is engaged in real estate investment.
EVC owns all of the stock of Fulcrum Management, Inc. and MinVen, Inc., which
are engaged in precious metal mining venture investment and management. EVC, EV,
Eaton Vance and BMR may also enter into other businesses.
Each Trust will be responsible for all of its expenses not expressly stated
to be payable by Wright under its Investment Advisory Contracts or by Eaton
Vance under its Administration Agreements, including, without limitation, the
fees and expenses of its custodian and transfer agent, including those incurred
for determining each Fund's net asset value and keeping each Fund's books; the
cost of share certificates; membership dues in investment company organizations;
brokerage commissions and fees; fees and expenses of registering its shares;
expenses of reports to shareholders, proxy statements, and other expenses of
shareholders' meetings; insurance premiums; printing and mailing expenses;
interest, taxes and corporate fees; legal and accounting expenses; expenses of
Trustees not affiliated with Eaton Vance or Wright; distribution expenses
incurred pursuant to the Trust's distribution plan (if any); and investment
advisory and administration fees. Each Trust will also bear expenses incurred in
connection with litigation in which the Trust is a party and the legal
obligation the Trust may have to indemnify its officers and Trustees with
respect thereto.
Each Trust's Investment Advisory Contract and Administration Agreement will
remain in effect until February 28, 1997. Each Trust's Investment Advisory
Contract may be continued with respect to a Fund from year to year thereafter so
long as such continuance after February 28, 1997 is approved at least annually
(i) by the vote of a majority of the Trustees who are not "interested persons"
of the Trust, Eaton Vance or Wright cast in person at a meeting specifically
called for the purpose of voting on such approval and (ii) by the Board of
Trustees of the Trust or by vote of a majority of the outstanding shares of that
Fund. Each Trust's Administration Agreement may be continued from year to year
after February 28, 1997 so long as such continuance is approved annually by the
vote of a majority of the Trustees. Each agreement may be terminated as to a
Fund at any time without penalty on sixty (60) days written notice by the Board
of Trustees or Directors of either party, or by vote of the majority of the
outstanding shares of that Fund, and each agreement will terminate automatically
in the event of its assignment. Each agreement provides that, in the absence of
willful misfeasance, bad faith, gross negligence or reckless disregard of its
obligations or duties to the Trust under such agreement on the part of Eaton
Vance or Wright, Eaton Vance or Wright will not be liable to the Trust for any
loss incurred.
CUSTODIAN
Investors Bank & Trust Company ("IBT"), 89 South Street, Boston,
Massachusetts, acts as custodian for the Funds. IBT has the custody of all cash
and securities of the Funds, maintains the Funds' general ledgers and computes
the daily net asset value per share. In such capacity it attends to details in
connection with the sale, exchange, substitution, transfer or other dealings
with the Funds' investments, receives and disburses all funds and performs
various other ministerial duties upon receipt of proper instructions from the
Funds. IBT charges custody fees which are competitive within the industry. A
portion of the custody fee for each fund served by IBT is based upon a schedule
of percentages applied to the aggregate assets of those funds managed by Eaton
Vance for which IBT serves as custodian, the fees so determined being then
allocated among such funds relative to their size. These fees are then reduced
by a credit for cash balances of the particular fund at IBT equal to 75% of the
91-day, U.S. Treasury Bill auction rate applied to the particular fund's average
daily collected balances for the week. In addition, each fund pays a fee based
on the number of portfolio transactions and a fee for bookkeeping and valuation
services.
<PAGE>
INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the
Trusts' independent certified public accountants, providing audit services, tax
return preparation, and assistance and consultation with respect to the
preparation of filings with the Securities and Exchange Commission.
BROKERAGE ALLOCATION
Wright places the portfolio security transactions for each Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments. Wright seeks to execute portfolio security transactions on the most
favorable terms and in the most effective manner possible. In seeking best
execution, Wright will use its best judgment in evaluating the terms of a
transaction, and will give consideration to various relevant factors, including
without limitation the size and type of the transaction, the nature and
character of the markets for the security, the confidentiality, speed and
certainty of effective execution required for the transaction, the reputation,
experience and financial condition of the broker-dealer and the value and
quality of service rendered by the broker-dealer in other transactions, and the
reasonableness of the brokerage commission or markup, if any.
It is expected that on frequent occasions there will be many broker-dealer
firms which will meet the foregoing criteria for a particular transaction. In
selecting among such firms, the Funds may give consideration to those firms
which supply brokerage and research services, quotations and statistical and
other information to Wright for their use in servicing their accounts. The Funds
may include firms which purchase investment services from Wright. The term
"brokerage and research services" includes advice as to the value of securities,
the advisability of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of securities; furnishing
analyses and reports concerning issuers, industries, securities, economic
factors and trends, portfolio strategy and the performance of accounts; and
effecting securities transactions and performing functions incidental thereto
(such as clearance and settlement). Such services and information may be useful
and of value to Wright in servicing all or less than all of their accounts and
the services and information furnished by a particular firm may not necessarily
be used in connection with the account which paid brokerage commissions to such
firm. The advisory fee paid by the Funds to Wright is not reduced as a
consequence of Wright's receipt of such services and information. While such
services and information are not expected to reduce Wright's normal research
activities and expenses, Wright would, through use of such services and
information, avoid the additional expenses which would be incurred if it should
attempt to develop comparable services and information through its own staffs.
Subject to the requirement that Wright shall use its best efforts to seek
to execute each Fund's portfolio security transactions at advantageous prices
and at reasonably competitive commission rates, Wright, as indicated above, is
authorized to consider as a factor in the selection of any broker-dealer firm
with whom a Fund's portfolio orders may be placed the fact that such firm has
sold or is selling shares of the Funds or of other investment companies
sponsored by Wright. This policy is consistent with a rule of the National
Association of Securities Dealers, Inc., which rule provides that no firm which
is a member of the Association shall favor or disfavor the distribution of
shares of any particular investment company or group of investment companies on
the basis of brokerage commissions received or expected by such firm from any
source.
Under each Trust's Investment Advisory Contract, Wright has the authority
to pay commissions on portfolio transactions for brokerage and research services
exceeding that which other brokers or dealers might charge provided certain
conditions are met. This authority will not be exercised, however, until the
Prospectus or this Statement of Additional Information has been supplemented or
amended to disclose the conditions under which Wright proposes to do so.
Each Investment Advisory Contract expressly recognizes the practices which
are provided for in Section 28(e) of the Securities Exchange Act of 1934 by
authorizing the selection of a broker or dealer which charges a Fund a
commission which is in excess of the amount
<PAGE>
of commission another broker or dealer would have charged for effecting
that transaction if it is determined in good faith that such commission was
reasonable in relation to the value of the brokerage and research services which
have been provided.
During the fiscal years ended December 31, 1995, 1994 and 1993, the Funds
in The Wright Managed Equity Trust paid the following agregate brokerage
commissions on portfolio transactions:
1995 1994 1993
---- ---- ----
Wright Selected Blue Chip
Equities Fund (WBC) $206,758 $345,675 $112,735
Wright Junior Blue Chip
Equities Fund (WJBC) $45,144 $71,949 $38,721
Wright Quality Core
Equities Fund (WQC) $100,898 $112,398 $109,394
Wright International Blue Chip
Equities Fund (WIBC) $241,321 $722,613 $248,202
It is expected that purchases and sales of portfolio investments by the
Funds in the Wright Managed Income Trust will be with the issuers or with major
dealers in debt instruments acting as principal, and that the Funds will
normally pay no brokerage commissions. The cost of securities purchased from
underwriters includes a disclosed, fixed underwriting commission or concession,
and the prices for which securities are purchased from and sold to dealers
usually include an undisclosed dealer mark-up or mark-down. During the fiscal
years ended December 31, 1995, 1994 and 1993, none of the Funds in The Wright
Managed Income Trust paid brokerage commissions.
PRICING OF SHARES
ALL FUNDS EXCEPT
WRIGHT U.S. TREASURY MONEY MARKET FUND
For a description of how the Funds value their shares, see "How the Funds
Value their Shares" in the Funds' current Prospectus. The Funds value securities
with a remaining maturity of 60 days or less by the amortized cost method. The
amortized cost method involves initially valuing a security at its cost (or its
fair market value on the sixty-first day prior to maturity) and thereafter
assuming a constant amortization to maturity of any discount or premium, without
regard to unrealized appreciation or depreciation in the market value of the
security.
WRIGHT U.S. TREASURY MONEY MARKET FUND
Wright U.S. Treasury Money Market Fund values its shares three times on
each day the New York Stock Exchange (the "Exchange") is open at noon, at 3:00
p.m. and as of the close of regular trading on the Exchange - normally 4:00 p.m.
New York time. The net asset value is determined by IBT (as agent for the Fund)
in the manner authorized by the Trustees. Portfolio assets of the Fund are
valued at amortized cost in an effort to attempt to maintain a constant net
asset value of $1.00 per share, which the Trustees have determined to be in the
best interests of the Fund and its shareholders. The Fund's use of the amortized
cost method to value the portfolio securities is conditioned on its compliance
with conditions contained in a rule issued by the Securities and Exchange
Commission (the "Rule"). Under the Rule, the Trustees are obligated, as a
particular responsibility within the overall duty of care owed to the
shareholders, to establish procedures reasonably designed, taking into account
current market conditions and the investment objectives of the Fund, to
stabilize the net asset value per share as computed for the purposes of
distribution, redemption and repurchase at $1.00 per share. The Trustees'
procedures include periodically monitoring, as they deem appropriate and at such
intervals as are reasonable in light of current market conditions, the extent of
deviation between the amortized cost value per share and a net asset value per
share based upon available indications of market value as well as review of the
methods used to calculate the deviation. The Trustees will consider what steps,
if any, should be taken in the event of a difference of more than 1/2 of 1%
between such two values. The Trustees will take such steps as they consider
appropriate (e.g., redemption in kind, selling prior to maturity to realize
gains or losses or to shorten the average portfolio maturity, withholding
dividends or using market quotations) to minimize any material dilution or other
unfair results to investors or existing shareholders, which might arise from
differences between the two values. The Rule requires
<PAGE>
that the Fund's investments, including repurchase agreements, be limited to
those U.S. dollar-denominated instruments which the Trustees determine present
minimal credit risks and which are at the time of acquisition rated by the
requisite number of nationally recognized statistical rating organizations in
one of the two highest short-term rating categories or, in the case of any
instrument that is not so rated, of comparable quality as determined by Wright
in accordance with procedures established by the Trustees. It also calls for the
Fund to maintain a dollar-weighted average portfolio maturity (not more than 90
days) appropriate to its objective of maintaining a stable net asset value of
$1.00 per share and precludes the purchase of any instrument with a remaining
maturity of more than 13 months. Should the disposition of a portfolio security
result in a dollar-weighted average portfolio maturity of more than 90 days, the
Fund's available cash will be invested in such a manner as to reduce such
maturity to 90 days or less as soon as reasonably practicable.
It is the normal practice of the Wright U.S. Treasury Money Market Fund to
hold portfolio securities to maturity and to realize par value therefor unless a
sale or other disposition is mandated by redemption requirements or other
extraordinary circumstances. Under the amortized cost method of valuation,
traditionally employed by institutions for valuation of money market
instruments, neither the amount of daily income nor the Fund's net asset value
is affected by any unrealized appreciation or depreciation on securities held
for the Fund. There can be no assurance that the Fund's objectives will be
achieved.
PRINCIPAL UNDERWRITER
Each Trust has adopted a Distribution Plan as defined in Rule 12b-1 under
the 1940 Act (the "Plan") on behalf of its Funds, except Wright U.S. Treasury
Money Market Fund. Each Trust's Plan specifically allows that expenses covered
by the Plan may include direct and indirect expenses incurred by any separate
distributor or distributors under agreement with the Trust in activities
primarily intended to result in the sale of its shares. The expenses of such
activities shall not exceed two-tenths of one percent (2/10 of 1%) per annum of
each Fund's average daily net assets. Payments under the Plan are reflected as
an expense in each Fund's financial statements. Such expenses do not include
interest or other financing charges.
Each Trust has entered into a distribution contract on behalf of its Funds
with its principal underwriter, Wright Investors' Service Distributors, Inc.
("WISDI"), a wholly-owned subsidiary of Winthrop, providing for WISDI to act as
a separate distributor of each Fund's shares. Wright U.S. Treasury Money Market
Fund is not obligated to make any distribution payments to WISDI under its
Distribution Contract.
It is intended that each Fund, except Wright U.S. Treasury Money Market
Fund, will pay 2/10 of 1% of its average daily net assets to WISDI for
distribution activities on behalf of the Fund in connection with the sale of its
shares. WISDI shall provide on a quarterly basis documentation concerning the
expenses of such activities. Documented expenses of a Fund shall include
compensation paid to and out-of-pocket disbursements of officers, employees or
sales representatives of WISDI, including telephone costs, the printing of
prospectuses and reports for other than existing shareholders, preparation and
distribution of sales literature, and advertising of any type intended to
enhance the sale of shares of the Fund. Subject to the 2/10 of 1% per annum
limitation imposed by each Trust's Plan, a Fund may pay separately for expenses
of activities primarily intended to result in the sale of the Fund's shares. It
is contemplated that the payments for distribution described above will be made
directly to WISDI. If the distribution payments to WISDI exceed its expenses,
WISDI may realize a profit from these arrangements. Peter M. Donovan, President,
Chief Executive Officer and a Trustee of each Trust and President and a Director
of Wright and Winthrop, is Vice President, Treasurer and a Director of WISDI.
A.M. Moody, III, Vice President and a Trustee of the Trust and Senior Vice
President of Wright and Winthrop, is President and a Director of WISDI.
It is the opinion of the Trustees and officers of each Trust that the
following are not expenses primarily intended to result in the sale of shares
issued by any Fund; fees and expenses of registering shares of the Fund under
federal or state laws regulating the sale of securities; fees and expenses of
registering the Trust as a broker-dealer or of registering an agent of the Trust
<PAGE>
under federal or state laws regulating the sale of securities; fees of
registering, at the request of the Trust, agents or representatives of a
principal underwriter or distributor of any Fund under federal or state laws
regulating the sale of securities, provided that no sales commission or "load"
is charged on sales of shares of the Fund; and fees and expenses of preparing
and setting in type the Trust's registration statement under the Securities Act
of 1933. Should such expenses be deemed by a court or agency having jurisdiction
to be expenses primarily intended to result in the sale of shares issued by a
Fund, they shall be considered to be expenses contemplated by and included in
the applicable Plan but not subject to the 2/10 of 1% per annum limitation
described above.
Under each Trust's Plan, the President or Vice President of the Trust shall
provide to the Trustees for their review, and the Trustees shall review at least
quarterly, a written report of the amounts expended under the Plan and the
purposes for which such expenditures were made. For the fiscal year ended
December 31, 1995, it is estimated that WISDI spent approximately the following
amounts on behalf of The Wright Managed Investment Funds, including the Funds in
the Trusts:
<TABLE>
Wright Investors Service Distributors, Inc.
Financial Summaries for the Year 1995
Printing Travel Commissions Admin-
Promo- & Mailing and and istration
FUNDS tional Prospectuses Entertainment Service Fees and Other TOTAL
- ------------------------------------------------------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
<S> <C> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund (WBC) $228,226 $ 68,096 $ 56,128 -- $ 60,255 $412,705
Wright Junior Blue Chip Equities Fund (WJBC) 15,279 4,559 3,758 -- 4,034 27,630
Wright Quality Core Equities Fund (WQC) 51,369 15,327 12,633 -- 13,562 92,891
Wright International Blue Chip Equities
Fund (WIBC) 201,231 71,969 59,320 39,975 63,682 436,177
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund (WUSTB) -- -- -- -- -- --
Wright U.S. Treasury Near Term Fund (WNTB) 192,171 59,339 47,261 -- 50,736 349,507
Wright Total Return Bond Fund (WTRB) 140,735 41,991 34,611 -- 37,156 254,493
Wright Current Income Fund (WCIF) 85,921 25,637 21,131 -- 22,684 155,373
</TABLE>
he following table shows the distribution expenses allowable to WISDI and
paid by each Fund for the year ended December 31, 1995.
Distribution Expenses
Distribution Distribution Paid As a % of
Expenses Expenses Fund's Average
Allowable Paid by Fund Net Asset Value
- ------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WBC $412,705 $412,705 0.20%
WJBC 63,483 27,630 (1)0.09
WQC 104,548 92,892 (2)0.18
WIBC 436,177 436,177 0.20
THE WRIGHT MANAGED INCOME TRUST
WUSTB $ 32,770 $ 0(3) 0.00%
WNTB 347,507 347,507 0.20
WTRB 254,493 254,493 0.20
WCIF 155,373 155,373 0.20
- ------------------------------------------------------------------------
(1) WISDI reduced its fee in the amount of $35,853.
(2) WISDI reduced its fee in the amount of $11,656.
(3) WISDI reduced its fee in the full amount of $32,770.
Under its terms, each Trust's Plan remains in effect from year to year,
provided such continuance is
<PAGE>
approved annually by a vote of its Trustees,
including a majority of the Trustees who are not interested persons of the Trust
and who have no direct or indirect financial interest in the operation of the
Trust's Plan. Each Plan may not be amended to increase materially the amount to
be spent for the services described therein as to any Fund without approval of a
majority of the outstanding voting securities of that Fund and all material
amendments of the Plan must also be approved by the Trustees of the Trust in the
manner described above. Each Trust's Plan may be terminated at any time as to
any Fund without payment of any penalty by vote of a majority of the Trustees of
the Trust who are not interested persons of the Trust and who have no direct or
indirect financial interest in the operation of the Plan or by a vote of a
majority of the outstanding voting securities of that Fund. So long as a Trust's
Plan is in effect, the selection and nomination of Trustees who are not
interested persons of the Trust shall be committed to the discretion of the
Trustees who are not such interested persons. The Trustees of each Trust have
determined that in their judgment there is a reasonable likelihood that the Plan
will benefit the Trust and its shareholders.
CALCULATION OF PERFORMANCE
AND YIELD QUOTATIONS
The average annual total return of each Fund is determined for a particular
period by calculating the actual dollar amount of investment return on a $1,000
investment in the Fund made at the maximum public offering price (i.e. net asset
value) at the beginning of the period, and then calculating the annual
compounded rate of return which would produce that amount. Total return for a
period of one year is equal to the actual return of the Fund during that period.
This calculation assumes that all dividends and distributions are reinvested at
net asset value on the reinvestment dates during the period.
The yield of each Fund, other than Wright U.S. Treasury Money Market Fund,
is computed by dividing its net investment income per share earned during a
recent 30-day period by the maximum offering price (i.e. net asset value) per
share on the last day of the period and annualizing the resulting figure. Net
investment income per share is equal to the Fund's dividends and interest earned
during the period, with the resulting number being divided by the average daily
number of shares outstanding and entitled to receive dividends during the
period.
For the 30-day period ended December 31, 1995, the yield of each Fund,
other than Wright U.S. Treasury Money Market Fund, was as follows:
30-Day Period Ended
December 31, 1995*
- ------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund 1.25%
Wright Junior Blue Chip Equities Fund 0.88%
Wright Quality Core Equities Fund 0.98%
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund 6.06%
Wright U.S. Treasury Near Term Fund 4.73%
Wright Total Return Bond Fund 5.30%
Wright Current Income Fund 6.46%
- ------------------------------------------------------------------------
* according to the following formula:
6
Yield = 2 [ ( a-b + 1) - 1 ]
---
cd
Where:
a = dividends and interest earned during the period.
b = expenses accrued for the period (after reductions).
c = the average daily number of accumulation units outstanding
during the period.
d = the maximum offering price per accumulation unit on the last day
of the period.
NOTE: "a" has been estimated for debt securities other than mortgage
certificates by dividing the year-end market value times the yield to maturity
by 360. "a" has been estimated for debt securities other than mortgage
certificates by dividing the year-end market value times the yield to maturity
by 360. "a" for mortgage securities, such as GNMA's, is the actual income
earned. Neither discount nor premium have been amortized.
"b" has been estimated by dividing the actual expense amounts for the year
by 360 or the number of days the Fund was in existence.
From time to time, quotations of the Wright U.S. Treasury Money Market
Fund's yield and effective yield may be included in advertisements or
communications to shareholders. If a portion of the Fund's expenses had not been
subsidized, the Fund would have had lower returns. These performance figures are
calculated in the following manner:
<PAGE>
A. Yield - the net annualized yield based on a specified 7-calendar days
calculated at simple interest rates. Yield is calculated by determining
the net change, exclusive of capital changes, in the value of a
hypothetical pre-existing account having a balance of one share at the
beginning of the period, subtracting a hypothetical charge reflecting
deductions from shareholders accounts, and dividing the difference by
the value of the account at the beginning of the base period to obtain
the base period return. The yield is annualized by multiplying the base
period return by 365/7. The yield figure is stated to the nearest
hundredth of one percent. The yield of Wright U.S. Treasury Money
Market Fund for the seven-day period ended December 31, 1995 was 4.89%.
B. Effective Yield - the net annualized yield for a specified 7-calendar
days assuming a reinvestment of the yield or compounding. Effective
yield is calculated by the same method as yield except the annualized
yield figure is compounded by adding 1, raising the sum to a power
equal to 365 divided by 7, and subtracting one from the result,
according to the following formula: Effective Yield = [(Base Period
Return + 1)^365/7] - 1. The effective yield of the Wright U.S. Treasury
Money Market Fund for the seven-day period ended December 31, 1995 was
5.01%.
As described above, yield and effective yield are based on historical
earnings and are not intended to indicate future performance. Yield and
effective yield will vary based on changes in market conditions and the level of
expenses.
A Fund's yield or total return may be compared to the Consumer Price Index
and various domestic securities indices. A Fund's yield or total return and
comparisons with these indices may be used in advertisements and in information
furnished to present or prospective shareholders.
From time to time, evaluations of a Fund's performance made by independent
sources may be used in advertisements and in information furnished to present or
prospective shareholders. According to the rankings prepared by Lipper
Analytical Services, Inc., an independent service which monitors the performance
of mutual funds. The Lipper performance analysis includes the reinvestment of
dividends and capital gain distributions, but does not take sales charges into
consideration and is prepared without regard to tax consequences.
The table below shows the average annual total return of each Fund for
the one, five and ten-year periods ended December 31, 1995 and the period from
inception to December 31, 1995.
<TABLE>
Period Ended 12/31/95 Inception To Inception
One Year Five Years Ten Years 12/31/95 Date
- ---------------------------------------------------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
<S> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund (1) 30.3% 12.8% 11.6% 12.3% 1/04/83
Wright Junior Blue Chip Equities Fund (2) 20.5% 12.3% 8.1% 9.6% 1/14/85
Wright Quality Core Equities Fund (3) 29.0% 14.2% 12.3% 13.1% 8/07/85
Wright International Blue Chip Equities Fund(4) 13.6% 10.0% -- 7.4% 9/14/89
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund (5) 28.2% 11.3% 10.2% 11.5% 7/25/83
Wright U.S. Treasury Near Term Fund (6) 11.9% 7.1% 7.6% 8.6% 7/25/83
Wright Total Return Bond Fund (7) 22.0% 9.4% 8.9% 10.5% 7/25/83
Wright Current Income Fund (8) 17.5% 8.3% -- 8.9% 4/15/87
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) If a portion of the WBC Fund's expenses had not been subsidized for the
years ended December 31, 1987, 1986 and 1984, the Fund would have had lower
returns; (2) If a portion of the WJBC Fund's expenses had not been subsidized
during the years ended December 31, 1995, 1987 and 1985, the Fund would have had
lower returns; (3) If a portion of the WQC Fund's expenses had not been
subsidized during the years ended December 31, 1995, 1990, 1989, 1988, 1987 and
1985, the Fund would have had lower returns; (4) If a portion of the Fund's
expenses had not been reduced during the fiscal years ending December 31, 1990
and 1989, the Fund would have had lower returns. (5) If a portion of WUSTB's
expenses had not been subsidized for the years ended December 31, 1995, 1993,
1992, 1987,1985 and 1984, the Fund would have had lower returns; (6) If a
portion of WNTB's expenses had not been subsidized during the year ended
December 31, 1987, the Fund would have had lower returns; (7) If a portion of
WTRB's expenses had not been subsidized during the five years ended December
31,1989, the Fund would have had lower returns; (8) If a portion of WCIF's
expenses had not been subsidized during the five years ended December 31,1991,
the Fund would have had lower returns.
</FN>
</TABLE>
<PAGE>
FINANCIAL STATEMENTS
The financial statements of the Funds, which are included in the Funds'
Annual Reports to Shareholders, are incorporated by reference into this
Statement of Additional Information and have been so incorporated in reliance on
the report of Deloite & Touche LLP, independent certified public accountants, as
experts in accounting and auditing. A copy of a Fund's most recent Annual Report
accompanies this Statement of Additional Information.
<PAGE>
APPENDIX
WRIGHT QUALITY RATINGS
Wright Quality Ratings provide the means by which the fundamental criteria
for the measurement of quality of an issuer's securities can be objectively
evaluated.
Each rating is based on 32 individual measures of quality grouped into four
components: (1) Investment Acceptance, (2) Financial Strength, (3) Profitability
and Stability, and (4) Growth. The total rating is three letters and a numeral.
The three letters measure (1) Investment Acceptance, (2) Financial Strength, and
(3) Profitability and Stability. Each letter reflects a composite measurement of
eight individual standards which are summarized as A: Outstanding, B: Excellent,
C: Good, D: Fair, L: Limited, and N: Not Rated. The numeral rating reflects
Growth and is a composite of eight individual standards ranging from 0 to 20.
EQUITY SECURITIES
INVESTMENT ACCEPTANCE reflects the acceptability of a security by and its
marketability among investors, and the adequacy of the floating supply of its
common shares for the investment of substantial funds.
FINANCIAL STRENGTH represents the amount, adequacy and liquidity of the
corporation's resources in relation to current and potential requirements. Its
principal components are aggregate equity and total capital, the ratio of
invested equity capital to debt, the adequacy of net working capital, its fixed
charges coverage ratio and other appropriate criteria.
PROFITABILITY AND STABILITY measures the record of a corporation's
management in terms of (1) the rate and consistency of the net return on
shareholders' equity capital investment at corporate book value, and (2) the
profits or losses of the corporation during generally adverse economic periods,
including its ability to withstand adverse financial developments.
GROWTH per common share of the corporation's equity capital, earnings, and
dividends -- rather than the corporation's overall growth of dollar sales and
income.
These ratings are determined by specific quantitative formulae. A
distinguishing characteristic of these ratings is that The Wright Investment
Committee must review and accept each rating. The Committee may reduce a
computed rating of any company, but may not increase it.
DEBT SECURITIES
Wright ratings for commercial paper, corporate bonds and bank certificates
of deposit consist of the two central positions of the four position
alphanumeric corporate equity rating. The two central positions represent those
factors which are most applicable to fixed income and reserve investments. The
first, Financial Strength, represents the amount, the adequacy and the liquidity
of the corporation's resources in relation to current and potential
requirements. Its principal components are aggregate equity and total capital,
the ratios of (a) invested equity capital, and (b) long-term debt, total of
corporate capital, the adequacy of net working capital, fixed charges coverage
ratio and other appropriate criteria. The second letter represents Profitability
and Stability and measures the record of a corporation's management in terms of:
(a) the rate and consistency of the net return on shareholders' equity capital
investment at corporate book value, and (b) the profits and losses of the
corporation during generally adverse economic periods, and its ability to
withstand adverse financial developments.
The first letter rating of the Wright four-part alpha-numeric corporate
rating is not included in the ratings of fixed-income securities since it
primarily reflects the adequacy of the floating supply of the company's common
shares for the investment of substantial funds. The numeric growth rating is not
included because this element is identified only with equity investments.
A-1 AND P-1 COMMERCIAL PAPER RATINGS
BY S&P AND MOODY'S
An S&P Commercial Paper Rating is a current assessment of the likelihood of
timely payment of debt having an original maturity of no more than 365 days.
`A': Issues assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with the numbers 1, 2, and 3 to indicate the relative degree of safety. The
`A-1' designation indicates that the degree of safety regarding timely payment
is either overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics will be denoted with a plus (+) sign
designation.
<PAGE>
The commercial paper rating is not a recommendation to purchase or sell a
security. The ratings are based on current information furnished to Standard &
Poor's by the issuer or obtained from other sources it considers reliable. The
ratings may be changed, suspended or withdrawn as a result of changes in or
unavailability of such information.
Issuers (or related supporting institutions) rated P-1 by Moody's have a
superior capacity for repayment of short-term promissory obligations. P-1
repayment capacity will normally be evidenced by the following characteristics:
-- Leading market positions in well-established industries.
-- High rates of return on funds employed.
-- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
-- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
-- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
BOND RATINGS
In addition to Wright quality ratings, bonds or bond insurers may be
expected to have credit risk ratings assigned by the two major rating companies,
Moody's and S&P. Moody's uses a nine-symbol system with Aaa being the highest
rating and C the lowest. S&P uses a 10-symbol system that ranges from AAA to D.
Bonds within the top four categories of Moody's (Aaa, Aa, A, and Baa) and of S&P
(AAA, AA, A, and BBB) are considered to be of investment-grade quality. Only the
top three grades are acceptable for the taxable income Funds. Note that both S&P
and Moody's currently give their highest rating to issuers insured by the
American Municipal Bond Assurance Corporation (AMBAC) or by the Municipal Bond
Investors Assurance Corporation (MBIA).
Bonds rated A by S&P have a strong capacity to pay principal and interest,
although they are somewhat more susceptible to the adverse effects of change in
circumstances and economic conditions than debt in higher-rated categories. The
rating of AA is accorded to issues where the capacity to pay principal and
interest is very strong and they differ from AAA issues only in small degree.
The AAA rating indicates an extremely strong capacity to pay principal and
interest.
Bonds rated A by Moody's are judged by Moody's to possess many favorable
investment attributes and are considered as upper medium grade obligations.
Bonds rated Aa by Moody's are judged by Moody's to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high-grade bonds. They are rated lower than Aaa bonds because margins of
protection may not be as large or fluctuations of protective elements may be of
greater degree or there may be other elements present which make the long-term
risks appear somewhat larger. Bonds rated Aaa by Moody's are judged to be of the
best quality. Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issuers.
NOTE RATINGS
In addition to Wright quality ratings, municipal notes and other short-term
loans may be assigned ratings by Moody's or Standard & Poor's.
Moody's ratings for municipal notes and other short-term loans are
designated Moody's Investment Grade (MIG). This distinction is in recognition of
the differences between short-term and long-term credit risk. Loans bearing the
designation MIG 1 are of the best quality, enjoying strong protection by
establishing cash flows of funds for their servicing or by established and
broad-based access to the market for refinancing, or both. Loans bearing the
designation MIG 2 are of high quality, with margins of protection ample although
not so large as in the preceding group.
Standard & Poor's top ratings for municipal notes issued after July 29,
1984 are SP-1 and SP-2. The designation SP-1 indicates a very strong capacity to
pay principal and interest. A "+" is added for those issues determined to
possess overwhelming safety characteristics. An "SP-2" designation indicates a
satisfactory capacity to pay principal and interest.
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on front of the report
Three thin vertical blue lines on the right side of the page
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1995
THE WRIGHT
MANAGED
EQUITY TRUST
THE WRIGHT MANAGED
INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED
INVESTMENT FUNDS
===============================================================================
WRIGHT "TRUE BLUE CHIP" EQUITY INVESTMENT FUNDS INCLUDE THREE DIVERSIFIED
PROFESSIONALLY MANAGED VEHICLES INTENDED FOR INVESTMENT PORTFOLIO USE. THEY CAN
BE USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY OBJECTIVE. FURTHER, AS
THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES CHARGES), STRATEGIES CAN
BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS DESIRED TO ADJUST TO CHANGING
MARKET CONDITIONS OR CHANGING REQUIREMENTS.
APPROVED
WRIGHT INVESTMENT LIST
Securities selected for each of the three equity portfolios are drawn from
investment lists prepared by Wright Investors' Service known as The Approved
Wright Investment List (the "AWIL"). Companies on the AWIL are selected by
Wright as having the highest investment quality among those equity securities
which are considered as "investment grade". The corporations may be large or
small, exchange traded or over-the-counter, and may include those not currently
paying dividends on their shares. Companies on the AWIL are, in the opinion of
Wright, soundly financed and have established records of earnings profitability
and equity growth. All have established investment acceptance and active, liquid
markets for their publicly owned shares.
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
seeks to enhance total investment return of price appreciation plus income by
providing management of a broadly diversified portfolio of equities of
well-established companies meeting strict quality standards. In selecting
companies from the AWIL for this portfolio, the Investment Committee of Wright
Investors' Service first ranks all AWIL companies by comparative market value.
The smaller companies are eliminated from consideration. From the remaining
companies Wright's Investment Committee selects, based on quantitative formulae,
those companies which are expected to do better over the next one to two years.
The quantitative formulae takes into consideration factors such as over/under
valuation and compatibility with current market trends. Investments in the
portfolio are equally weighted in the selected securities.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment
return of price appreciation plus income by providing active management of
equities of well-established companies meeting strict quality standards.
Equities selected are limited to those companies on the AWIL whose current
operations reflect defined, quantified characteristics which have been
determined to offer comparatively superior total investment returns over the
intermediate term. The process selects those companies from the AWIL, regardless
of size, based on Wright's evaluation of their outlook as described above.
Investments are equally weighted.
WRIGHT JUNIOR BLUE CHIP EQUITIES (WJBC). This portfolio seeks to enhance total
investment return of price appreciation plus income by providing management of
equities of smaller companies still experiencing their rapid growth period.
Equity securities selected are limited to those companies on the AWIL which when
ranked by stock market capitalization represent the smaller companies on the
list. These companies are then ranked by their outlook and those with higher
ranking are considered for purchase. Investments are equally weighted.
DISCIPLINED APPROACH
The disciplines which determine sale include preventing individual holdings from
exceeding more than 2 1/2 times their normal value position in this Fund and
requiring the sale of the securities of any company which no longer meets the
standards of the AWIL. Also, portfolio holdings which fall in the unfavorable
category based on the quantitative formulae described above are generally sold.
The disciplines which determine purchase provide that new funds, income from
securities currently held, and proceeds of sales of securities will be used to
increase those positions which at current market are the furthest below their
normal target values and to purchase companies which become eligible for the
portfolios as described above.
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES.....................Inside Front Cover
LETTER TO
SHAREHOLDERS................................... 1
WRIGHT MANAGED EQUITY FUNDS
-- Dividend Distributions.................... 4
WRIGHT SELECTED BLUE CHIP
EQUITIES FUND (WBC) --
Portfolio of Investments..................... 5
Financial Statements......................... 8
WRIGHT JUNIOR BLUE CHIP
EQUITIES FUND (WJBC) --
Portfolio of Investments.....................11
Financial Statements........................ 13
WRIGHT QUALITY CORE
EQUITIES FUND (WQC) --
Portfolio of Investments.....................16
Financial Statements........................ 19
<PAGE>
REPORT TO SHAREHOLDERS
===============================================================================
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
Pockets of market weakness, notably in the technology sector, developed during
the fourth quarter, but for most U.S. stocks the great 1995 bull market
continued. The Wright Selected Blue Chip Equities Fund had a total investment
return of 4.9% for the quarter, lagging the S&P 500's 6.0% return, but topping
the 2.4% return for the Lipper Equity Growth Fund Average. For all of 1995,
WBC's total return was 30.3%, compared with 37.4% for the S&P 500, 30.8% for the
Lipper Equity Growth Fund Average and 23.3% for Value Line's equal-weighted
1,600-stock Composite.
As high-technology stocks faded in the fourth quarter, the WBC's relatively low
weighting in this group benefitted its performance. Substantial positions in
printing and publishing and apparel stocks also helped, while underweighting in
oil and gas stocks, which were strong in the quarter, reduced the Fund's gain.
For the full year, the WBC Fund was held back by its below-market weighting in
electronics, but benefitted from a relatively large position in financial
stocks, one of the best performing groups last year.
The stock market has gotten off to a tentative start in the first few weeks of
1996, reflecting the ongoing federal budget impasse and some disappointing
earnings, primarily from technology stocks but affecting other industries as
well. After the strong stock market gains seen last year, it would not be
surprising if a period of profit taking persisted for a while in 1996. But if a
budget agreement is reached soon and if interest rates decline further and
corporate profits rise modestly in 1996, as Wright expects, the DJIA could reach
5500 this coming year.
By dint of their relatively good earnings growth prospects and reasonable
valuations - at a time when investor caution is increasing - high-quality stocks
have the potential for better-than-market performance during 1996. Earnings
growth for the stocks in the Selected Blue Chip Fund is expected to average
about 11% annually over the next five years, close to double the rate expected
for the S&P 500. The Fund's year-end 1995 price/earnings multiple of 15.2 was
12% lower than the S&P 500's P/E multiple of 17.4.
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
In the fourth quarter of 1995, the Wright Quality Core Equities Fund had a total
investment return of 4.9%, compared with 2.4% for the Lipper Equity Growth Fund
Average. This brought the Fund's fll-year return to 29.0%, versus 30.8% for the
Lipper fund average. As with the WBC, the WQC's performance in 1995 was reduced
somewhat by its relatively low exposure to high-tech stocks, but this factor
helped the Fund during the fourth quarter. One of the Fund's larger positions is
in drug and hospital supply stocks, an area which was strong last year.
In terms of trailing 12-month earnings, the WQC Fund averaged a P/E multiple of
15.9 at year-end 1995, compared with 17.4 for the S&P 500. The Fund's valuation
is even more attractive in terms of forecast 1996 earnings, where its P/E of 14
represents a 15% discount to the S&P 500's PE of 16.4.
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
In general, small stocks did not perform as well as larger-cap issues during the
fourth quarter of 1995 or for the entire year. Reflecting this trend, the Wright
Junior Blue Chip Equities Fund, which holds the smaller stocks from the Active
Wright Investment List, had a total investment return of 0.2% for the last three
months of 1995, in line with the 0.4% reported for the S&P SmallCap Index and
the 0.8% return estimated for the Value-Line Composite but well below the S&P
500's 6.0%. For all of 1995, the JBC returned 20.5%, compared with 30.4% for the
S&P SmallCap Index, 23.3% for Value Line and 37.4% for the S&P 500.
The WJBC Fund started 1996 with an average P/E multiple of 15.7, a 10% discount
to the S&P 500's 17.4 multiple; the JBC's price/equity discount versus the S&P
500 was more than 25%. Over the next five years, earnings growth for current
WJBC Fund holdings is forecast to average 12% per year, twice the growth
expected for the average S&P 500 company.
Remember that the performance data cited herein represents past performance
which is not predictive of future performance and that the investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Sincerely,
Peter M. Donovan
President
February 1996
<PAGE>
<TABLE>
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested
12/31/85 through 12/31/95
Annual Total Return
-----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Selected Blue Chip Fund +30.3% +12.8% +11.6%
Lipper Growth Funds +30.8% +15.7% +12.4%
NYSE +34.9% +16.3% +14.2%
Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 12/31/85
would have grown to $29,933 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Selected Lipper Equity NYSE Wright U.S. Fiduciary
Blue Chip Fund Growth Funds Index Equity Index
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000 $10,000
12/31/86 $11,418 $11,304 $11,802 $11,601
12/31/87 $11,209 $11,429 $12,150 $11,427
12/31/88 $13,598 $13,032 $14,254 $14,329
12/31/89 $16,939 $16,361 $18,428 $16,810
12/31/90 $16,379 $15,464 $17,724 $14,505
12/31/91 $22,273 $21,030 $23,297 $20,385
12/31/92 $23,323 $22,668 $25,169 $24,733
12/31/93 $23,804 $25,073 $27,945 $28,747
12/31/94 $22,966 $24,534 $27,911 $28,954
12/31/95 $29,933 $32,088 $37,645 $37,385
</TABLE>
<TABLE>
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested
12/31/85 through 12/31/95
Annual Total Return
-----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Junior Blue Chip Fund +20.5% +12.3% +8.1%
Value Line Stock Index +23.3% +15.1% +8.0%
NYSE +34.9% +16.3% +14.2%
Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/85
would have grown to $21,698 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Junior Value Line NYSE Wright U.S. Fiduciary
Blue Chip Fund Stock Index Index Equity Index
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000 $10,000
12/31/86 $10,562 $10,789 $11,802 $11,601
12/31/87 $10,183 $9,904 $12,150 $11,427
12/31/88 $11,732 $11,798 $14,254 $14,329
12/31/89 $13,564 $13,554 $18,428 $16,810
12/31/90 $12,125 $10,714 $17,724 $14,505
12/31/91 $16,609 $14,168 $23,297 $20,385
12/31/92 $17,154 $15,727 $25,169 $24,733
12/31/93 $18,514 $18,010 $27,945 $28,747
12/31/94 $18,005 $17,544 $27,911 $28,954
12/31/95 $21,698 $21,635 $37,645 $37,385
</TABLE>
<TABLE>
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT QUALITY CORE EQUITIES FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Quality Core Equities Fund +29.0% +14.2% +12.3%
Lipper Growth Funds +30.8% +15.7% +12.4%
NYSE +34.9% +16.3% +14.2%
Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT QUALITY CORE EQUITIES FUND on 12/31/85
would have grown to $31,935 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the
total investment return mountain chart.
Date Wright Quality Lipper Equity NYSE Wright U.S. Fiduciary
Equities Fund Growth Funds Index Equity Index
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000 $10,000
12/31/86 $11,690 $11,304 $11,802 $11,601
12/31/87 $11,809 $11,429 $12,150 $11,427
12/31/88 $13,776 $13,032 $14,254 $14,329
12/31/89 $16,947 $16,361 $18,428 $16,810
12/31/90 $16,458 $15,464 $17,724 $14,505
12/31/91 $22,860 $21,030 $23,297 $20,385
12/31/92 $24,693 $22,668 $25,169 $24,733
12/31/93 $24,940 $25,073 $27,945 $28,747
12/31/94 $24,759 $24,534 $27,911 $28,954
12/31/95 $31,935 $32,088 $37,645 $37,385
<FN>
NOTES: The investment results of Wright U.S. Equity Funds and Lipper's
average of 646 Growth Funds are net of all fees and expenses charged to the
Funds. No fees or expenses have been deducted from the other averages. The
Total Investment Return is the % return of an initial $10,000 investment
made at the beginning of the period to the ending redeemable value assuming
all dividends and distributions are reinvested. Past performance is not
predictive of future performance.
</FN>
</TABLE>
<PAGE>
<TABLE>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
===================================================================================================================================
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/4/83 $10.00 100.00 $1,000.00
Dec. 94 13.85 0.42 0.030905 250.65 3,471.54 -3.52% 6.28% 11.32% 10.94%
Jan. 95 13.98 250.65 3,504.13 -3.26% 8.21% 10.64% 10.94%
Feb. 95 14.71 250.65 3,687.11 2.27% 9.24% 11.00% 11.34%
Mar. 95 14.58 0.22 0.015172 254.46 3,709.97 6.84% 8.78% 11.16% 11.31%
Apr. 95 14.90 254.46 3,791.39 9.19% 9.75% 11.47% 11.43%
May 95 15.34 254.46 3,903.35 12.57% 8.56% 11.24% 11.61%
Jun. 95 15.65 0.05 0.003205 255.28 3,995.13 17.18% 8.85% 11.27% 11.73%
Jul. 95 16.16 255.27 4,125.19 18.47% 9.87% 11.66% 11.93%
Aug. 95 16.31 255.27 4,163.48 15.32% 12.31% 11.80% 11.93%
Sep. 95 16.85 0.05 0.002973 256.03 4,314.11 22.37% 14.11% 12.63% 12.16%
Oct. 95 16.77 256.03 4,293.63 21.37% 14.31% 12.04% 12.04%
Nov. 95 17.42 256.03 4,460.05 30.75% 13.71% 11.82% 12.29%
Dec. 95 16.83 0.83 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32%
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
>
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/15/85 $10.00 100.00 $1,000.00
Dec. 94 11.00 0.39 0.036184 205.59 2,261.54 -2.75% 5.83% -- 8.54%
Jan. 95 10.86 205.59 2,232.75 -5.49% 7.80% 7.69% 8.33%
Feb. 95 11.40 205.59 2,343.77 -1.76% 8.52% 7.85% 8.78%
Mar. 95 10.54 0.89 0.085482 223.17 2,352.20 2.47% 7.71% 8.16% 8.74%
Apr. 95 10.78 223.17 2,405.76 4.71% 8.53% 8.55% 8.91%
May 95 10.88 223.17 2,428.08 8.48% 7.39% 8.12% 8.93%
Jun. 95 11.06 0.11 0.009701 225.33 2,492.19 12.79% 7.90% 8.17% 9.13%
Jul. 95 11.57 225.33 2,607.11 16.43% 9.29% 8.37% 9.52%
Aug. 95 11.76 225.33 2,649.93 14.10% 13.12% 8.65% 9.61%
Sep. 95 12.04 0.03 0.002071 225.80 2,718.64 18.43% 15.18% 9.45% 9.79%
Oct. 95 11.78 225.80 2,659.93 14.48% 15.84% 8.90% 9.49%
Nov. 95 12.08 225.80 2,727.67 22.74% 14.70% 8.58% 9.67%
Dec. 95 10.85 1.22 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58%
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC)
- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/22/85 $10.00 100.00 $1,000.00
Dec. 94 11.39 1.10 0.097247 246.63 2,809.14 -0.73% 7.88% -- 11.56%
Jan. 95 11.52 246.63 2,841.20 0.56% 9.93% -- 11.58%
Feb. 95 12.06 246.63 2,974.38 5.70% 10.77% -- 12.02%
Mar. 95 12.15 0.04 0.003314 247.45 3,006.51 11.16% 10.20% -- 12.03%
Apr. 95 12.36 247.45 3,058.48 13.18% 10.97% -- 12.12%
May 95 12.64 247.45 3,127.76 14.14% 9.56% -- 12.27%
Jun. 95 12.90 0.04 0.003113 248.22 3,202.03 18.89% 9.96% -- 12.42%
Jul. 95 13.36 248.22 3,316.22 20.33% 11.22% -- 12.71%
Aug. 95 13.52 248.22 3,355.93 17.20% 14.05% 12.79% 12.72%
Sep. 95 13.88 0.04 0.002872 248.93 3,455.18 23.37% 16.03% 13.52% 12.94%
Oct. 95 13.79 248.93 3,574.67 29.93% 15.96% 12.93% 12.75%
Nov. 95 14.36 248.93 3,574.67 29.93% 15.04% 12.63% 13.09%
Dec. 95 12.65 1.88 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 98.7%
<S> <C> <C>
APPAREL -- 2.4%
Reebok International Ltd............ 52,800 $ 1,491,600
Russell Corp........................ 74,100 2,056,275
VF Corp............................. 31,330 1,652,657
-----------
$ 5,200,532
-----------
AUTOMOTIVE -- 1.8%
Eaton Corp.......................... 29,700 $ 1,592,663
Echlin Inc.......................... 31,000 1,131,500
Modine Manufacturing Co............. 49,500 1,188,000
-----------
$ 3,912,163
-----------
BEVERAGES -- 1.9%
Anheuser Busch...................... 34,650 $ 2,317,219
Brown Forman Corp................... 52,300 1,908,950
-----------
$ 4,226,169
-----------
CHEMICALS -- 5.9%
Clorox Company...................... 26,940 $ 1,929,577
Great Lakes Chemical Corp........... 29,900 2,152,800
Lubrizol Corp....................... 58,600 1,633,475
Morton International Inc............ 33,000 1,183,875
PPG Industries...................... 42,500 1,944,375
Rohm & Haas Co...................... 30,900 1,989,188
Sherwin Williams Co................. 50,700 2,066,025
-----------
$ 12,899,315
-----------
CONSTRUCTION -- 1.0%
Fleetwood Enterprises, Inc.......... 88,900 $ 2,289,175
-----------
DIVERSIFIED -- 7.3%
Crane Company....................... 50,900 $ 1,876,938
General Electric Co................. 31,340 2,256,480
Johnson Controls.................... 34,100 2,344,375
Lancaster Colony Corp............... 34,000 1,266,500
National Service Industries......... 65,800 2,130,275
Rockwell International Corp......... 39,910 2,110,241
Standex International Corp.......... 55,730 1,825,157
Teleflex, Incorporated.............. 50,400 2,066,400
-----------
$ 15,876,366
-----------
DRUGS, COSMETICS & HEALTH CARE -- 7.8%
Alberto Culver Co. Class A.......... 76,500 $ 2,333,250
Bard C.R............................ 59,000 1,902,750
Becton Dickinson & Co............... 29,900 2,242,500
Bristol-Myers Squibb Co............. 26,764 2,298,358
Johnson & Johnson................... 29,900 2,560,188
Lilly (Eli) & Co.................... 47,800 2,688,750
Merck & Co., Inc.................... 43,400 2,853,550
-----------
$ 16,879,346
-----------
ELECTRICAL -- 0.9%
Emerson Electric Co................. 23,750 $ 1,941,563
-----------
ELECTRONICS -- 4.0%
Hewlett Packard Inc................. 30,500 $ 2,554,375
Raytheon Co......................... 47,360 2,237,760
Sun Microsystems Inc.*.............. 86,000 3,923,750
-----------
$ 8,715,885
-----------
FINANCIAL -- 17.1%
AFLAC Corp.......................... 44,700 $ 1,938,862
American International Group........ 25,000 2,312,500
Bancorp Hawaii Inc.................. 56,475 2,026,041
Commerce Bancshares, Inc............ 67,449 2,579,939
Compass Bancshares.................. 69,500 2,293,500
Edwards (A.G.), Inc................. 83,000 1,981,625
Fifth Third Bancorp................. 32,900 2,409,925
First Colony Corp................... 88,100 2,235,537
First Hawaiian Inc.................. 72,300 2,169,000
First Virginia Banks Inc............ 45,665 1,906,514
Jefferson Pilot Corp................ 48,600 2,259,900
MBIA Inc............................ 30,400 2,280,000
Raymond James Financial Corp........ 93,500 1,975,187
FINANCIAL -- continued
<PAGE>
Southern National Corp.............. 80,700 2,118,375
Southtrust Corporation.............. 77,075 1,975,047
Star Banc Corp...................... 44,565 2,651,618
SunTrust Banks Inc.................. 31,420 2,152,270
-----------
$ 37,265,840
-----------
FOOD -- 4.2%
Dean Foods Company.................. 73,500 $ 2,021,250
Hormel (George A.) & Company........ 74,200 1,827,175
Pioneer Hi-Bred International....... 53,700 2,987,062
Universal Foods Corp................ 58,500 2,347,313
-----------
$ 9,182,800
-----------
MACHINERY & EQUIPMENT -- 3.0%
Briggs & Stratton Corp.............. 48,480 $ 2,102,820
Dover Corp.......................... 55,100 2,031,813
Pitney-Bowes Inc.................... 49,600 2,331,200
-----------
$ 6,465,833
-----------
METAL PRODUCTS MANUFACTURERS -- 3.8%
CLARCOR Inc......................... 87,950 $ 1,791,980
Kaydon Corp......................... 58,900 1,789,087
Stanley Works....................... 50,000 2,575,000
Watts Industries, Inc. Class A...... 90,500 2,104,125
-----------
$ 8,260,193
-----------
OIL, GAS & COAL -- 1.1%
Exxon Corporation................... 29,300 $ 2,347,662
-----------
PAPER -- 1.9%
Kimberly-Clark Corp................. 35,300 $ 2,921,075
Sonoco Products Co.................. 46,000 1,207,500
-----------
$ 4,128,575
-----------
PRINTING & PUBLISHING -- 8.2%
American Greetings Corp............. 42,000 $ 1,160,250
Banta (George) Corp................. 53,699 2,362,756
Ennis Business Forms................ 144,320 1,767,920
Gannett Co. Inc..................... 37,680 2,312,610
Harland (John H.) Co................ 76,600 1,599,025
Lee Enterprises, Inc................ 102,200 2,350,600
Reynolds & Reynolds Inc............. 73,600 2,861,200
Wallace Computer Services........... 61,600 3,364,900
-----------
$ 17,779,261
-----------
RECREATION -- 2.9%
International Dairy Queen, Inc*..... 99,700 $ 2,268,175
Luby's Cafeteria, Inc............... 94,050 2,092,613
Sturm, Ruger & Company, Inc......... 69,600 1,905,300
-----------
$ 6,266,088
-----------
RETAILERS -- 8.5%
Casey's General Stores.............. 119,500 $ 2,614,062
Claire's Stores Inc................. 61,000 1,075,125
Consolidated Stores Corp*........... 46,000 1,000,500
Dress Barn Inc*..................... 202,200 1,996,725
Giant Food Inc...................... 76,300 2,403,450
Hannaford Brothers Company.......... 63,100 1,553,838
May Department Stores............... 42,800 1,808,300
Rex Stores Corporation*............. 72,100 1,279,775
Rite Aid Corp....................... 69,800 2,390,650
Ross Stores Inc..................... 128,400 2,455,650
-----------
$ 18,578,075
-----------
<PAGE>
UTILITIES -- 10.4%
Ameritech Corp...................... 40,140 $ 2,368,260
Central & South West Corp........... 68,200 1,901,075
Century Telephone Enterprises....... 75,000 2,381,250
DQE................................. 77,400 2,380,050
Duke Power Co....................... 41,250 1,954,219
Lincoln Telecom Co.................. 114,020 2,408,672
NIPSCO Industries Inc............... 51,600 1,973,700
Sprint Corp......................... 59,800 2,384,525
TECO Energy, Inc.................... 98,000 2,511,250
Wisconsin Energy Corp............... 74,850 2,292,281
-----------
$ 22,555,282
-----------
MISCELLANEOUS -- 4.6%
Dionex Corporation*................. 46,300 $ 2,627,525
Genuine Parts Co.................... 54,050 2,216,050
Leggett & Platt Inc................. 54,900 1,331,325
Marshall Industries*................ 63,865 2,051,663
Stanhome Inc........................ 59,100 1,721,288
-----------
$ 9,947,851
-----------
TOTAL EQUITY INTERESTS - 98.7%
(identified cost, $171,824,296) $214,717,974
RESERVE FUNDS -- 1.1%
Face Amount
American Express Corp., 5.65%, 1/2/96
(at amortized cost.............$2,400,000) 2,400,000
-----------
TOTAL INVESTMENTS -- 99.8%
(identified cost, $174,224,296) $217,117,974
OTHER ASSETS,
LESS LIABILITIES -- 0.2% 469,970
-----------
NET ASSETS -- 100% $217,587,944
============
* Non-income-producing security.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $174,224,296
Unrealized appreciation................ 42,893,678
------------
Total Value (Note 1A)................ $217,117,974
Cash..................................... 69,173
Receivable for Fund shares sold.......... 233,603
Dividends and interest receivable........ 444,852
------------
Total Assets........................... $217,865,602
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 260,284
Trustee fees payable..................... 370
Accrued custodian fee.................... 6,800
Accrued expenses and other liabilities... 10,204
------------
Total Liabilities...................... $ 277,658
------------
NET ASSETS.................................. $217,587,944
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $173,374,154
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... (13,798)
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 42,893,678
Undistributed net investment income...... 1,333,910
------------
Net assets applicable to outstanding shares$217,587,944
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 12,931,453
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $16.83
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Dividends.............................. $ 4,832,004
Interest............................... 280,771
------------
Total Income......................... $ 5,112,775
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,283,832
Administrator fee (Note 2)............. 263,811
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,317
Custodian fee (Note 2)................. 82,028
Transfer and dividend disbursing agent fees 19,584
Shareholder communication expense...... 20,947
Distribution expenses (Note 3)......... 412,705
Audit services......................... 28,500
Legal services......................... 1,421
Printing............................... 2,544
Registration costs..................... 20,598
Interest expense....................... 885
Miscellaneous.......................... 7,400
------------
Total Expenses....................... $ 2,146,572
------------
Net Investment Income.............. $ 2,966,203
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 10,432,468
Change in unrealized appreciation
of investments......................... 40,854,983
------------
Net realized and unrealized gain
on investments......................... $ 51,287,451
------------
Net increase in net assets
from operations.................... $ 54,253,654
=============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended
December 31,
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income...................................................... $ 2,966,203 $ 2,972,904
Net realized gain on investment transactions............................... 10,432,468 9,148,808
Change in unrealized appreciation of investments........................... 40,854,983 (19,763,621)
------------ ------------
Increase (decrease) in net assets from operations..................... $ 54,253,654 $ (7,641,909)
------------ ------------
Undistributed net investment income (loss) included in
price of shares sold and redeemed (Note 1C).................................. $ (87,633) $ 280,883
------------ ------------
Distributions to shareholders --
From net investment income................................................. $ (2,612,968) $ (2,385,221)
From net realized gain on investment transactions.......................... (10,432,468) (4,787,377)
In excess of net realized gain on investment transactions.................. (1,367,084) --
------------ ------------
Total distributions to shareholders................................... $ (14,412,520) $ (7,172,598)
------------ ------------
Net increase (decrease) from Fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................................ $ (8,181,348) $ 25,068,300
------------ ------------
Net increase in net assets............................................ $ 31,572,153 $ 10,534,676
NET ASSETS:
At beginning of year........................................................... 186,015,791 175,481,115
------------ ------------
At end of year................................................................. $ 217,587,944 $ 186,015,791
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,333,910 $ 2,009,226
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
--------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.850 $ 14.920 $ 14.790 $ 17.180 $ 13.840
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................. $ 0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267
Net realized and unrealized gain (loss)
on investments....................... 3.904 (0.763) 0.104 0.498 4.553
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 4.130 $ (0.530) $ 0.300 $ 0.720 $ 4.820
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.200) $ (0.180) $ (0.170) $ (0.200) $ (0.250)
From net realized gain on investments.. (0.840) (0.360) -- (2.910) (1.230)
In excess of net realized gain
on investments....................... (0.110) -- -- -- --
-------- -------- -------- -------- --------
Total distributions................ $ (1.150) $ (0.540) $ (0.170) $ (3.110) $ (1.480)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180
========= ========= ========= ========= =========
Total Return(1)............................. 30.34% (3.52%) 2.06% 4.71% 35.98%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $217,588 $186,016 $ 175,481 $ 152,997 $167,900
Ratio of expenses to average net assets 1.04% 1.03% 1.03% 1.02% 1.08%
Ratio of net investment income to average
net assets........................... 1.44% 1.57% 1.28% 1.34% 1.67%
Portfolio turnover rate................ 44% 72% 28% 77% 72%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
<TABLE>
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 99.5%
<S> <C> <C>
AUTOMOTIVE -- 1.7%
Modine Manufacturing Co............. 18,100 $ 434,400
-----------
CONSTRUCTION -- 1.2%
Fleetwood Enterprises, Inc.......... 12,000 $ 309,000
-----------
DIVERSIFIED -- 8.7%
Carlisle Corp....................... 6,000 $ 242,250
Crane Company....................... 18,000 663,750
Standex International Corp.......... 20,000 655,000
Teleflex, Inc....................... 17,000 697,000
-----------
$ 2,258,000
-----------
DRUGS, COSMETICS & HEALTH CARE -- 7.9%
Alberto Culver Company Class A...... 21,000 $ 640,500
Invacare Corporation................ 26,000 656,500
Nellcor Inc*........................ 13,000 754,000
-----------
$ 2,051,000
-----------
ELECTRICAL -- 1.7%
Baldor Electric..................... 22,500 $ 452,813
-----------
ELECTRONICS -- 6.4%
Dallas Semiconductor Corp........... 34,000 $ 705,500
Digi International, Inc*............ 8,800 167,200
Logicon Inc......................... 10,000 275,000
Verifone Inc*....................... 18,000 515,250
-----------
$ 1,662,950
-----------
FINANCIAL -- 10.9%
First Commercial Corp............... 18,190 $ 600,270
First Hawaiian Inc.................. 15,000 450,000
Raymond James Financial Corp........ 27,000 570,375
Star Banc Corp...................... 12,000 714,000
Southern National Corp.............. 19,000 498,750
-----------
$ 2,833,395
-----------
FOOD -- 3.0%
Universal Food's Corporation........ 19,500 $ 782,437
-----------
MACHINERY & EQUIPMENT -- 5.2%
Briggs & Stratton Corp.............. 15,000 $ 650,625
Donaldson Co. Inc................... 28,000 703,500
-----------
$ 1,354,125
-----------
METAL PRODUCTS MANUFACTURERS -- 7.5%
CLARCOR Inc......................... 25,300 $ 515,487
Kaydon Corp......................... 24,300 738,112
Regal Beloit Corp................... 13,500 293,625
Watts Industries, Inc. Class A...... 17,000 395,250
-----------
$ 1,942,474
-----------
PAPER -- 2.0%
Wausau Paper Mills Co............... 18,700 $ 509,575
-----------
PRINTING & PUBLISHING -- 12.2%
American Business Products-GA....... 12,000 $ 342,000
Banta (George) Co., Inc............. 12,750 561,000
Ennis Business Forms................ 40,000 490,000
Harland (John H.) Co................ 31,000 647,125
Lee Enterprises, Inc................ 24,000 552,000
Wallace Computer Services........... 10,400 568,100
-----------
$ 3,160,225
-----------
<PAGE>
RECREATION -- 6.3%
International Dairy Queen, Inc.*.... 33,000 $ 750,750
Luby's Cafeteria, Inc............... 31,000 689,750
Sturm, Ruger & Company, Inc......... 7,500 205,313
-----------
$ 1,645,813
-----------
RETAILERS -- 7.2%
Casey's General Stores, Inc......... 26,000 $ 568,750
Dress Barn Inc*..................... 46,000 454,250
Hannaford Brothers Co............... 16,000 394,000
Rex Stores Corporation*............. 13,500 239,625
Ruddick Corp........................ 18,600 213,900
-----------
$ 1,870,525
-----------
TRANSPORTATION -- 2.3%
Expeditors International............ 23,000 $ 600,875
-----------
UTILITIES -- 4.6%
DQE................................. 10,000 $ 307,500
Lincoln Telecom Co.................. 42,000 887,250
-----------
$ 1,194,750
-----------
MISCELLANEOUS -- 10.7%
Crawford & Co....................... 39,000 $ 633,750
Dionex Corp*........................ 9,400 533,450
Lydall Inc*......................... 10,000 227,500
Marshall Industries*................ 23,000 738,875
Stanhome Inc........................ 23,000 669,875
-----------
$ 2,803,450
-----------
TOTAL INVESTMENTS -- 99.5%
(identified cost, $21,151,984) $ 25,865,807
OTHER ASSETS,
LESS LIABILITIES -- 0.5% 127,651
-----------
NET ASSETS -- 100.0% $ 25,993,458
============
* Non-income-producing security.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 21,151,984
Unrealized appreciation................ 4,713,823
------------
Total Value (Note 1A)................ $ 25,865,807
Cash..................................... 7,569
Receivable for investment sold........... 875,931
Dividends receivable..................... 49,619
Receivable for Fund shares sold.......... 5,006
------------
Total Assets........................... $ 26,803,932
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 124,046
Loans payable (Note 8)................... 675,000
Trustee fees payable..................... 370
Accrued distribution fee................. 4,338
Accrued custodian fee.................... 2,500
Accrued expenses and other liabilities... 4,220
------------
Total Liabilities...................... $ 810,474
------------
NET ASSETS.................................. $ 25,993,458
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 19,120,702
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 1,908,092
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 4,713,823
Undistributed net investment income...... 250,841
------------
Net assets applicable to outstanding shares $ 25,993,458
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 2,395,166
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $10.85
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Dividends............................... $ 619,095
Interest................................ 23,850
------------
Total Income.......................... $ 642,945
------------
Expenses --
Investment Adviser fee (Note 2)......... $ 174,577
Administrator fee (Note 2).............. 63,483
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,400
Custodian fee (Note 2).................. 37,087
Transfer and dividend disbursing agent fees 6,951
Shareholder communication expense....... 5,198
Distribution expenses (Note 3).......... 63,483
Audit services.......................... 24,900
Legal services.......................... 957
Registration costs...................... 17,099
Printing................................ 1,288
Interest expense........................ 4,766
Miscellaneous........................... 3,108
------------
Total Expenses........................ $ 405,297
------------
Deduct --
Reduction of distribution expenses by
Principal Underwriter (Note 3)........ $ 35,853
Reduction of custodian fee.............. 7,919
------------
Total................................. $ 43,772
------------
Net expenses.......................... $ 361,525
------------
Net investment income............... $ 281,420
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................. $ 2,687,430
Change in unrealized appreciation
of investments.......................... 2,980,154
------------
Net realized and unrealized gain
on investments.......................... $ 5,667,584
------------
Net increase in net assets
from operations..................... $ 5,949,004
=============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended
December 31,
-----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income...................................................... $ 281,420 $ 529,321
Net realized gain on investment transactions............................... 2,687,430 6,599,714
Change in unrealized appreciation of investments........................... 2,980,154 (8,816,947)
------------ ------------
Increase (decrease) in net assets from operations..................... $ 5,949,004 $ (1,687,912)
------------ ------------
Undistributed net investment loss included in
price of shares sold and redeemed (Note 1C).................................. $ (78,838) $ (98,655)
------------ ------------
Distributions to shareholders --
From net investment income................................................... $ (266,107) $ (488,244)
From net realized gain on investment transactions............................ (2,687,430) (2,117,788)
In excess of net realized gain on investment transactions.................... (2,913,944) --
------------ ------------
Total distributions to shareholders................................... $ (5,867,481) $ (2,606,032)
------------ ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (11,133,267) $ (26,708,885)
------------ ------------
Net decrease in net assets............................................ $ (11,130,582) $ (31,101,484)
NET ASSETS:
At beginning of year........................................................... 37,124,040 68,225,524
------------ ------------
At end of year................................................................. $ 25,993,458 $ 37,124,040
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 250,841 $ 384,483
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.000 $ 11.950 $ 11.690 $ 14.720 $ 11.500
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072
Net realized and unrealized gain (loss)
on investments....................... 1.977 (0.431) 0.809 0.315 4.118
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 2.097 $ (0.330) $ 0.910 $ 0.360 $ 4.190
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.100) $ (0.100) $ (0.060) $ (0.030) $ (0.070)
From net realized gain on investments.. (1.030) (0.520) (0.590) (3.360) (0.900)
In excess of net realized gain
on investments....................... (1.117) -- -- -- --
-------- -------- -------- -------- --------
Total distributions................ $ (2.247) $ (0.620) $ (0.650) $ (3.390) $ (0.970)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720
========= ========= ========= ========= =========
Total Return(3)............................. 20.51% (2.75%) 7.93% 3.28% 36.98%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 25,993 $ 37,124 $ 68,226 $ 64,635 $120,911
Ratio of expenses to average net assets 1.17%(2) 1.11% 1.09% 1.07% 1.10%
Ratio of net investment income to average
net assets........................... 0.89% 0.91% 0.86% 0.31% 0.52%
Portfolio turnover rate................ 40% 36% 38% 80% 60%
<FN>
(1)During the year ended December 31, 1995, the Principal Underwriter reduced
its fee. Had such action not been undertaken, net investment income per share
and the ratios would have been as follows:
1995
Net investment income per share........ $ 0.105
=========
Ratios (As a percentage of average net assets):
Expenses........................... 1.28%
=========
Net investment income.............. 0.78%
=========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.14%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
<TABLE>
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 99.5%
<S> <C> <C>
APPAREL -- 3.2%
Nautica Enterprises Inc.*........... 9,000 $ 393,750
Nike Inc............................ 3,800 264,575
Reebok International Ltd............ 9,300 262,725
Russell Corp........................ 11,300 313,575
VF Corp............................. 6,225 328,369
-----------
$ 1,562,994
-----------
AUTOMOTIVE -- 1.6%
Eaton Corp.......................... 5,900 $ 316,388
Echlin Inc.......................... 6,200 226,300
Modine Manufacturing Co............. 10,000 240,000
-----------
$ 782,688
-----------
BEVERAGES -- 1.4%
Anheuser Busch...................... 5,400 $ 361,125
Brown-Forman Corp .................. 9,150 333,975
-----------
$ 695,100
-----------
CHEMICALS -- 6.4%
Air Products & Chemicals............ 5,600 $ 295,400
Clorox Corp......................... 4,300 307,987
Cooper Tire & Rubber................ 13,700 337,362
Great Lakes Chemical Corp........... 4,700 338,400
Lubrizol Corp....................... 9,500 264,813
Morton International Inc............ 7,000 251,125
PPG Industries...................... 7,200 329,400
RPM Inc............................. 19,125 315,563
Rohm & Haas Co...................... 5,650 363,719
Sherwin Williams Co................. 8,300 338,225
-----------
$ 3,141,994
-----------
CONSTRUCTION -- 2.0%
Clayton Homes....................... 15,135 $ 323,511
Fleetwood Enterprises, Inc.......... 13,000 334,750
Oakwood Homes Corp.................. 8,500 326,187
-----------
$ 984,448
-----------
DIVERSIFIED -- 6.4%
Crane Company....................... 9,600 $ 354,000
General Electric Co................. 5,250 378,000
Johnson Controls.................... 4,900 336,875
Lancaster Colony Corp............... 9,932 369,967
Minnesota Mining & Mfg. Co.......... 5,066 335,622
National Service Industries......... 10,900 352,888
Rockwell Int'l. Corp................ 6,650 351,619
Standex International Corp.......... 9,400 307,850
Teleflex Inc........................ 8,000 328,000
-----------
$ 3,114,821
-----------
DRUGS, COSMETICS & HEALTH CARE -- 8.1%
Abbott Laboratories................. 8,130 $ 339,427
Alberto Culver Co. Class A.......... 10,600 323,300
Ballard Medical Products............ 13,200 235,950
Bard (C.R.) Inc..................... 12,000 387,000
Becton Dickinson & Co............... 4,750 356,250
Bristol-Myers Squibb Co............. 4,000 343,500
Invacare Corp....................... 12,500 315,625
Johnson & Johnson................... 3,850 329,656
Lilly (Eli) & Company............... 5,200 292,500
Merck & Co.......................... 5,842 384,112
Nellcor, Inc.*...................... 5,700 330,600
Pfizer Inc.......................... 5,600 352,800
-----------
$ 3,990,720
-----------
ELECTRICAL -- 1.3%
Baldor Electric..................... 14,400 $ 289,800
Emerson Electric Co................. 4,400 359,700
-----------
$ 649,500
-----------
ELECTRONICS -- 4.5%
Dallas Semiconductor Corp........... 15,800 $ 327,850
Digi International, Inc.*........... 12,600 239,400
Hewlett-Packard Inc................. 3,800 318,250
Logicon Inc......................... 12,200 335,500
Raytheon Co......................... 7,400 349,650
Sun Microsystems, Inc.*............. 6,800 310,250
Verifone, Inc.*..................... 11,200 320,600
-----------
$ 2,201,500
-----------
<PAGE>
FINANCIAL -- 15.1%
AFLAC, Inc.......................... 8,100 $ 351,337
Allied Group........................ 6,400 230,400
American International Group........ 3,700 342,250
Bancorp Hawaii...................... 8,950 321,081
Commerce Bancshares, Inc............ 8,978 343,389
Compass Bancshares.................. 10,300 339,900
Edwards (A.G.), Inc................. 14,500 346,187
Fifth Third Bancorp................. 4,650 340,613
First Colony Corp................... 12,900 327,338
First Commercial Corp............... 11,021 363,693
First Hawaiian Inc.................. 11,900 357,000
First Security CP................... 9,500 365,750
First Virginia Banks Inc............ 7,700 321,475
Jefferson Pilot Corp................ 7,800 362,700
MBIA, Inc........................... 4,350 326,250
Mercantile Bankshares............... 11,700 326,138
Old Kent Financial Corp............. 7,800 320,775
Raymond James Financial Corp........ 15,500 327,438
Southern National Corp.............. 12,900 338,625
Southtrust Corp..................... 14,200 363,875
Star Banc Corp...................... 5,800 345,100
SunTrust Banks Inc.................. 5,350 366,475
-----------
$ 7,427,789
-----------
FOOD -- 5.4%
CPC International Inc............... 4,850 $ 332,831
Dean Foods Co....................... 11,300 310,750
H.J. Heinz Co....................... 11,025 365,203
Hershey Foods Corp.................. 5,340 347,100
Hormel (George A.) & Co............. 13,400 329,975
Pioneer Hi-Bred International....... 6,100 339,312
Sara Lee Corp....................... 7,000 223,125
Universal Foods Corp................ 10,300 413,288
-----------
$ 2,661,584
-----------
MACHINERY & EQUIPMENT -- 2.7%
Briggs & Stratton Corp.............. 7,600 $ 329,650
Donaldson Co., Inc.................. 14,200 356,775
Dover Corp.......................... 8,400 309,750
Pitney-Bowes Inc.................... 7,400 347,800
-----------
$ 1,343,975
-----------
METAL PRODUCTS MANUFACTURERS -- 4.0%
CLARCOR............................. 16,700 $ 340,263
Illinois Tool Works Inc............. 5,300 312,700
Kaydon Corp......................... 9,700 294,637
Regal Beloit Corp................... 15,100 328,425
Stanley Works....................... 6,500 334,750
Watts Industries, Inc. Class A...... 15,600 362,700
-----------
$ 1,973,475
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.7%
Exxon Corp.......................... 4,400 $ 352,550
-----------
PAPER -- 2.8%
Bemis Co............................ 13,500 $ 345,937
Kimberly-Clark...................... 4,350 359,963
Sonoco Products Co.................. 12,955 340,069
Wausau Paper Mills Co............... 11,600 316,100
-----------
$ 1,362,069
-----------
PRINTING & PUBLISHING -- 6.7%
American Greetings.................. 10,000 $ 276,250
Banta Corp.......................... 7,500 330,000
Donnelley (R.R.) & Sons............. 9,500 374,062
Ennis Business Forms................ 24,000 294,000
Gannett Co. Inc..................... 5,450 334,494
Harland (John H.) Co................ 14,000 292,250
Knight-Ridder Inc................... 5,050 315,625
Lee Enterprises, Inc................ 16,000 368,000
Reynolds & Reynolds, Inc............ 9,500 369,312
Wallace Computer Services........... 6,300 344,138
-----------
$ 3,298,131
-----------
RECREATION -- 4.5%
Capital Cities/ABC, Inc............. 2,600 $ 320,775
Carnival Cruise Class A............. 9,100 221,813
International Dairy Queen, Inc.*.... 14,300 325,325
Luby's Cafeteria, Inc............... 16,000 356,000
McDonald's Corp..................... 7,500 338,437
Sturm, Ruger & Company, Inc......... 10,900 298,388
Wendy's International, Inc.......... 16,600 352,750
-----------
$ 2,213,488
-----------
<PAGE>
RETAILERS -- 8.3%
Albertson's Inc..................... 9,600 $ 315,600
Arbor Drugs Inc..................... 16,800 352,800
Casey's General Stores, Inc......... 13,700 299,687
Claire's Stores Inc................. 15,900 280,237
Consolidated Stores Corp.*.......... 14,000 304,500
Dress Barn, Inc*.................... 35,200 347,600
Hannaford Brothers Co............... 12,800 315,200
May Department Stores............... 7,300 308,425
Nordstrom Inc....................... 7,700 311,850
Rex Stores Corp.*................... 13,200 234,300
Rite Aid Corp....................... 10,500 359,625
Ross Stores Inc..................... 17,300 330,863
Walgreen Co......................... 10,700 319,663
-----------
$ 4,080,350
-----------
TRANSPORTATION -- 1.1%
Atlantic Southeast Airlines......... 9,000 $ 193,500
Expeditors International............ 12,900 337,013
-----------
$ 530,513
-----------
UTILITIES -- COMMUNICATIONS -- 6.9%
AmeriTech Corp...................... 6,600 $ 389,400
Bell Atlantic Corp.................. 3,500 234,062
Century Telephone Enterprises....... 10,000 317,500
DQE Inc............................. 12,750 392,062
Duke Power Company.................. 7,250 343,468
Lincoln Telecommunications.......... 17,600 371,800
NIPSCO Industries, Inc.............. 8,300 317,475
Sprint Corp......................... 8,300 330,962
TECO Energy, Inc.................... 13,700 351,062
Wisconsin Energy Corp............... 10,550 323,094
-----------
$ 3,370,885
-----------
MISCELLANEOUS -- 6.4%
Computer Sciences Corp.*............ 4,500 $ 316,125
Crawford and Co..................... 21,200 344,500
Dionex Corporation*................. 5,700 323,475
Genuine Parts Co.................... 8,750 358,750
Interpublic Group Cos. Inc.......... 8,700 377,362
Kent Electronics Corp.*............. 6,850 399,869
Leggett & Platt Inc................. 15,200 368,600
Marshall Industries*................ 9,800 314,825
Stanhome Inc........................ 11,300 329,113
-----------
$ 3,132,619
-----------
TOTAL EQUITY INTERESTS -- 99.5%
(identified cost, $39,625,069) $ 48,871,193
RESERVE FUNDS -- 0.5%
Face Amount
American Express Corp., 5.65%, 1/2/96
(at amorized cost.................$250,000) 250,000
-----------
TOTAL INVESTMENTS -- 100.0%
(identified cost, $39,875,069) $ 49,121,193
OTHER ASSETS,
LESS LIABILITIES -- 0.0% 13,081
-----------
NET ASSETS -- 100% $ 49,134,274
============
* Non-income-producing security.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
===============================================================================
<TABLE>
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 39,875,069
Unrealized appreciation................ 9,246,124
------------
Total Value (Note 1A)................ $ 49,121,193
Cash..................................... 3,148
Dividends and interest receivable........ 92,171
------------
Total Assets........................... $ 49,216,512
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 61,807
Trustee fees payable..................... 370
Accrued custodian fee.................... 3,000
Accrued distribution fee................. 12,751
Accrued expenses and other liabilities... 4,310
------------
Total Liabilities...................... $ 82,238
------------
NET ASSETS.................................. $ 49,134,274
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the
market value of securities received in exchange
for Fund shares and shares issued to share- holders
in payment of distributions declared), less cost of
shares reacquired......... $ 40,057,176
Unrealized appreciation of investments
(computed on the basis of identified cost) 9,246,124
Distributions in excess of net investment
income................................. (169,026)
------------
Net assets applicable to
outstanding shares................... $ 49,134,274
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 3,884,915
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $12.65
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Dividends.............................. $ 1,117,596
Interest............................... 54,250
------------
Total Income......................... $ 1,171,846
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 235,233
Administrator fee (Note 2)............. 104,548
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,557
Custodian fee (Note 2)................. 52,851
Transfer and dividend disbursing agent fees 8,423
Shareholder communication expense...... 4,668
Distribution expenses (Note 3)......... 104,548
Audit services......................... 29,900
Legal services......................... 1,005
Registration costs..................... 18,342
Printing............................... 2,441
Interest expense....................... 182
Miscellaneous.......................... 4,108
------------
Total Expenses....................... $ 568,806
------------
Deduct --
Reduction of distribution expenses by
Principal Underwriter (Note 3)........ $ 11,656
Reduction of custodian fee.............. 8,482
------------
Total................................. $ 20,138
------------
Net expenses.......................... $ 548,668
------------
Net investment income.............. $ 623,178
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 7,097,632
Change in unrealized appreciation
of investments......................... 5,562,948
------------
Net realized and unrealized gain
on investments......................... $ 12,660,580
------------
Net increase in net assets
from operations.................... $ 13,283,758
=============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
==============================================================================
<TABLE>
Year Ended
December 31,
--------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income...................................................... $ 623,178 $ 1,076,807
Net realized gain on investment transactions............................... 7,097,632 9,834,657
Change in unrealized appreciation of investments........................... 5,562,948 (11,332,016)
------------ ------------
Increase (decrease) in net assets from operations..................... $ 13,283,758 $ (420,552)
------------ ------------
Undistributed net investment loss included in
price of shares sold and redeemed (Note 1C).................................. $ (61,558) $ (198,337)
------------ ------------
Distributions to shareholders --
From net investment income................................................. $ (614,587) $ (879,992)
From net realized gain on investment transactions.......................... (6,258,626) (4,488,457)
In excess of net realized gain on investment transactions.................. -- (7,109)
------------ ------------
Total distributions to shareholders................................... $ (6,873,213) $ (5,375,558)
------------ ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (8,299,369) $ (31,269,572)
------------ ------------
Net decrease in net assets............................................ $ (1,950,382) $ (37,264,019)
NET ASSETS:
At beginning of year........................................................... 51,084,656 88,348,675
------------ ------------
At end of year................................................................. $ 49,134,274 $ 51,084,656
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME
INCLUDED IN NET ASSETS........................................................ $ (169,026) $ 192,766
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
-------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.390 $ 12.720 $ 13.380 $ 14.730 $ 10.760
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175
Net realized and unrealized gain (loss)
on investments....................... 3.107 (0.295) (0.046) 0.951 3.985
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 3.260 $ (0.115) $ 0.130 $ 1.130 $ 4.160
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.160) $ (0.160) $ (0.160) $ (0.160) $ (0.190)
From net realized gain on investments.. (1.840) (1.055) (0.625) (2.320) --
In excess of net realized gains........ -- -- (0.005) -- --
-------- -------- -------- -------- --------
Total distributions................ $ (2.000) $ (1.215) $ (0.790) $ (2.480) $ (0.190)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730
========= ========= ========= ========= =========
Total Return(3)............................. 28.98% (0.70%) 1.00% 8.02% 38.90%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 49,134 $ 51,085 $ 88,349 $ 81,674 $ 80,065
Ratio of expenses to average net assets 1.07%(2) 0.99% 0.97% 1.01% 1.03%
Ratio of net investment income to average
net assets........................... 1.19% 1.46% 1.37% 1.20% 1.34%
Portfolio turnover rate................ 83% 55% 53% 70% 9%
<FN>
(1)For the year ended December 31, 1995, the Principal Underwriter reduced its
fee. Had such action not been undertaken, net investment income per share and
the ratios would have been as follows:
1995
Net investment income per share........ $ 0.150
=========
Ratios (As a percentage of average net assets):
Expenses........................... 1.09%
=========
Net investment income.............. 1.17%
=========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.05%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
THE WRIGHT MANAGED EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC)
series, Wright Quality Core Equities Fund (WQC) series and Wright International
Blue Chip (WIBC) series, is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end, management investment company. WIBC's
financial statements have been prepared separately. The following is a summary
of significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Investment Valuations -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities for which closing sale prices are not available are
valued at the mean between the latest bid and asked prices. Short-term
obligations maturing in sixty days or less are valued at amortized cost,
which approximates value. Securities for which market quotations are
unavailable are appraised at their fair value as determined in good faith
by or at the direction of the Trustees.
B. Federal Taxes -- The Trust's policy is to comply with the provisions of the
Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary.
C. Equalization -- The Funds follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
reacquisitions of Fund shares, equivalent on a per-share basis to the
amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net investment income.
As a result, undistributed net investment income per share is unaffected by
sales or reacquisitions of Fund shares.
D. Distributions -- The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result only in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gains.Distributions in excess
of tax basis earnings and profits are reported in the financial
statements as a return of capital. Permanent differences between book and
tax accounting for certain items may result in reclassification of these
items. During the period ended December 31, 1995, the following amounts
were reclassified due to differences between book and tax accounting
created primarily by the unavailability of a tax benefit for operating
losses, deferral of certain losses for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
<TABLE>
Accumulated Undisributed
Undistributed Net Net
Realized Gain(Loss) on Investment
Paid-in Investment and Foreign Income
Capital Currency Transactions (Loss)
------------------------------------------------------------------
<S> <C> <C> <C>
WBC $3,173,985 ($2,233,067) ($940,918)
WJBC -- $70,117 ($70,117)
WQC $1,147,831 ($839,006) ($308,825)
------------------------------------------------------------------
</TABLE>
These changes had no effect on the net assets per share.
<PAGE>
E. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis.
F. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the year ended December 31, 1995, the effective annual rate was 0.62% for
WBC, 0.55% for WJBC, and 0.45% for WQC. The Trust also has engaged Eaton Vance
Management (Eaton Vance) to act as administrator of the Trust. Under the
Administration Agreement, Eaton Vance is responsible for managing the business
affairs of the Trust and is compensated based upon a percentage of average daily
net assets which rate is reduced as average daily net assets exceed certain
levels. For the year ended December 31, 1995, the effective annual rate was
0.13% for WBC, 0.20% for WJBC and 0.20% for WQC. The custodian fee was paid to
Investors Bank & Trust Company (IBT) for its services as custodian of the Trust.
Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the
custodian agreement, IBT receives a fee reduced by credits which are determined
based on the average daily cash balances the Trust maintains with IBT. All
significant credit balances are reported as a reduction of expenses in the
Statement of Operations. Certain of the Trustees and officers of the Trust are
Trustees or officers of the above organizations. Except as to Trustees of the
Trust who are not affiliated with Eaton Vance or Wright, Trustees and officers
receive remuneration for their services to the Trust out of the fees paid to
Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a subsidiary of Wright Investors' Service, an annual rate of 2/10
of 1% of each Fund's average daily net assets for activities primarily intended
to result in the sale of each Fund's shares. To enhance the net income of WJBC
and WQC, the Principal Underwriter reduced its fee by $35,853 and $11,656,
respectively.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<PAGE>
<TABLE>
Year Ended December 31,
1995 1994
---------------------------- ----------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND --
Sold ............................................... 4,266,308 $ 65,320,088 5,636,130 $ 81,393,593
Issued to shareholders in payment
of distributions declared.......................... 700,517 11,141,024 429,746 5,868,021
Reacquired........................................... (5,467,216) (84,642,460) (4,395,865) (62,193,314)
--------- ------------ --------- ------------
Net increase (decrease)........................ (500,391) $ (8,181,348) 1,670,011 $ 25,068,300
========== ============== ========== ==============
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND --
Sold ............................................... 225,623 $ 2,466,377 780,096 $ 9,079,764
Issued to shareholders in payment
of distributions declared.......................... 444,836 4,715,097 201,483 2,267,954
Reacquired........................................... (1,650,724) (18,314,741) (3,315,481) (38,056,603)
--------- ------------ --------- ------------
Net decrease................................... (980,265) $ (11,133,267) (2,333,902) $ (26,708,885)
========== ============== ========== ==============
WRIGHT QUALITY CORE EQUITIES FUND --
Sold ............................................... 655,665 $ 8,101,383 1,640,109 $ 20,229,633
Issued to shareholders in payment
of distributions declared.......................... 522,768 6,525,442 444,758 5,046,814
Reacquired........................................... (1,778,830) (22,926,194) (4,547,757) (56,546,019)
--------- ------------ --------- ------------
Net decrease................................... (600,397) $ (8,299,369) (2,462,890) $ (31,269,572)
========== ============== ========== ==============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations and redemptions in kind, for the year ended December
31, 1995, were as follows:
<TABLE>
Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core
Equities Fund Equities Fund Equities Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases..................................... $ 88,785,915 $ 12,509,195 $ 42,336,223
============ ============ ============
Sales......................................... $ 84,611,575 $ 28,188,478 $ 45,429,333
============ ============ ============
Redemptions in Kind (at Value)................ $ 23,068,420 $-- $ 8,055,128
============ ============ ============
In addition, the redemption in kind transactions resulted in realized gains of $4,591,935 and $817,863 for WBC
and WQC, respectively.
</TABLE>
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
<TABLE>
Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core
Equities Fund Equities Fund Equities Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aggregate cost................................ $174,224,296 $21,151,984 $39,875,069
============ ============ ============
Gross unrealized appreciation................. $ 45,860,228 $ 5,383,164 $ 9,896,846
Gross unrealized depreciation................. (2,966,550) (669,341) (650,722)
----------- ----------- -----------
Net unrealized appreciation................... $ 42,893,678 $ 4,713,823 $ 9,246,124
============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(7) FINANCIAL INSTRUMENTS
The Trust may trade in financial instruments with off-balance sheet risk in
the normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. The Funds hold no such instruments
at December 31, 1995.
(8) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of
$10,000,000 less the value of any borrowing. Wright Junior Blue Chip Equities
Fund had loans outstanding of $675,000 at December 31, 1995.
<PAGE>
INDEPENDENT AUDITORS' REPORT
===============================================================================
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Wright Selected Blue Chip
Equities Fund, Wright Junior Blue Chip Equities Fund, and Wright
Quality Core Equities Fund (three of the four portfolios which
constitute The Wright Managed Equity Trust) as of December 31, 1995,
the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended December 31,
1995 and 1994, and the financial highlights for each of the years in
the five-year period ended December 31, 1995. These financial
statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of the securities owned as of December 31, 1995, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
each of the aforementioned Portfolios of The Wright Managed Equity
Trust as of December 31, 1995, the results of their operations, the
changes in their net assets, and their financial highlights for the
respective stated periods in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on back cover of this report
Three thin vertical blue lines on the right side of page
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED
EQUITY TRUST
ANNUAL
REPORTS
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on the front cover of the report
Three thin vertical,dark blue, lines on the right side of the page.
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1995
WRIGHT
INTERNATIONAL
BLUE CHIP
EQUITIES FUND
THE WRIGHT MANAGED
INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED
INVESTMENT FUNDS
===============================================================================
WRIGHT INTERNATIONAL
BLUE CHIP
EQUITIES FUND (WIBC)
A broadly diversified portfolio of equities of well-established, non-U.S.
companies meeting strict quality standards. The portfolio may buy common
stocks traded on the securities exchange of the country in which the
company is based or it may purchase American Depositary Receipts (ADR's)
traded in the United States. The portfolio is denominated in U.S. dollars
and investors should understand that fluctuations in foreign exchange rates
may impact the value of their investment.
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES...................Inside Front Cover
LETTER TO
SHAREHOLDERS................................. 1
WRIGHT INTERNATIONAL
BLUE CHIP EQUITIES FUND (WIBC) --
Dividend Distributions....................... 3
Portfolio of Investments..................... 4
Financial Statements......................... 7
<PAGE>
REPORT TO SHAREHOLDERS
===============================================================================
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
The Wright International Blue Chip Equities Fund (WIBC) had a total investment
return of 0.9% in the fourth quarter of 1995, trailing the 4.2% return for the
FT/S&P Actuaries World Ex U.S. index. For all of 1995, however, the WIBC Fund's
total return of 13.6% was well ahead of the 10.4% return in the FT/S&P Actuaries
World Ex U.S. index. On average for the year, the effect of a modest weakening
in the value of the dollar compared with the currencies of Europe had a slightly
positive effect on the return to U.S. investors from foreign securities. In the
fourth quarter, the dollar strengthened, reducing dollar returns.
The WIBC Fund's relatively low exposure in Japan (about 11% of Fund assets vs
about 40% in the FT/S&P Actuaries World Ex-U.S. index) limited its gain in the
fourth quarter, when the Japanese market was strong. For the full year, low
exposure to Japan helped, since the Japanese market was one of the world's
weakest in 1995. Above-market positions in the United Kingdom, Denmark, Sweden
and Hong Kong, all strong markets, boosted the Fund's full-year return.
Over the past five years, the WIBC Fund has averaged a 10.0% annual rate of
total investment return. While this compares favorably with the 9.3% average
annual rate of return for the FT/S&P Actuaries World Ex U.S. index, it lags the
16.5% rate of return on U.S. stocks for the same period (S&P 500). Since 1990,
foreign markets have generally lagged the U.S. market. Going forward, world
stock markets stand to benefit from the global trend to lower interest rates,
but slow (Japan) or slowing (Europe) economic growth may put some pressure on
corporate profits durng 1996. The stocks in the WIBC Fund appear to be well
positioned compared with foreign securities in general because of their superior
quality and because they averaged a P/E ratio of 17.5 at the end of 1995 as
compared with a P/E of 25 for the FT/S&P Actuaries World Ex U.S. index.
<PAGE>
It should be understood that performance data quoted herein represents past
performance which is not predictive of future performance and that the
investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Also, there are risks associated with international investing such as
currency fluctuations and potential political instability.
Sincerely,
Peter M. Donovan
President
February 1996
<TABLE>
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 10/01/89* through 12/31/95
Annual Total Return
----------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
<S> <C> <C> <C>
Wright Int'l Blue Chip Equities Fund +13.6% +10.0% +7.2%
FT World Ex U.S. Index +10.4% +9.3% +3.7%
Wright Int'l Fiduciary Equity Index +5.6% +8.2% +4.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 09/30/89
would have grown to $15,486 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Int'l Blue FT World Ex U.S Wright Int'l Fiduciary
Chip Equities Fund Index Equity Index
------------------------------------------------------------------------------
<S> <C> <C> <C>
09/30/89 $10,000 $10,000 $10,000
12/31/89 $10,312 $10,490 $10,587
12/31/90 $9,599 $8,064 $8,946
12/31/91 $11,251 $9,138 $9,971
12/31/92 $10,807 $7,944 $8,383
12/31/93 $13,858 $10,507 $11,362
12/31/94 $13,631 $11,386 $12,576
12/31/95 $15,486 $12,575 $13,284
<FN>
NOTES: *: For comparison with other averages, the investment results are shown
from the first month-end since the Fund's inception. The investment results
of Wright International Blue Chip Equities Fund are net of all fees and expenses
charged to the Fund. No fees or expenses have been deducted from the
other averages. The Total Investment Return is the % return of an initial
$10,000 investment made at the beginning of the period to the ending redeemable
value assuming all dividends and distributions are reinvested. Past performance
is not predictive of future performance.
</FN>
</TABLE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
===============================================================================
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return
(Annualized) (Annualized)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9/14/89 $10.00 100.00 $1,000.00
12/94 13.09 $0.05 0.003867 105.48 1,380.78 -1.64% 5.74% 6.28%
1/95 12.68 105.48 1,337.53 -9.06% 5.56% 5.55%
2/95 13.02 105.48 1,373.39 -4.44% 7.06% 5.99%
3/95 13.73 105.48 1,448.28 4.89% 8.45% 6.91%
4/95 14.11 105.48 1,488.37 4.70% 9.21% 7.33%
5/95 14.39 105.48 1,517.90 9.11% 7.95% 7.58%
6/95 14.54 105.48 1,533.73 11.25% 7.37% 7.67%
7/95 15.08 105.48 1,590.69 10.82% 7.39% 8.22%
8/95 14.51 105.48 1,530.56 4.72% 8.71% 7.40%
9/95 14.74 105.48 1,554.82 8.72% 11.39% 7.58%
10/95 14.66 105.48 1,546.38 6.03% 9.31% 7.37%
11/95 14.47 105.48 1,526.34 9.96% 9.46% 7.05%
12/95 14.77 0.10 0.006873 106.21 1,568.69 13.61% 10.04% 7.42%
</TABLE>
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 97.0%
<S> <C> <C>
AUSTRALIA -- 3.6%
Broken Hill Proprietary Co. ADR..... 17,930 $ 1,013,045
Broken Hill Proprietary Co.......... 41,293 582,776
Coles Myer Ltd ADR................. 62,551 1,618,507
Email Ltd........................... 600,760 1,427,983
F.H. Faulding (U.K.)................ 448,071 1,996,963
Lend Lease Corp. Ltd................ 141,038 2,042,879
-----------
$ 8,682,153
-----------
BELGIUM -- 2.3%
Colruyt SA.......................... 6,700 $ 1,809,888
Delhaize Freres & Cie Le Lion SA.... 41,200 1,707,917
GB Inno - AFV....................... 654 28,000
GB Inno - BM SA..................... 44,850 1,968,950
-----------
$ 5,514,755
-----------
CANADA -- 2.7%
Bombardier Inc. Class B............. 186,000 $ 2,454,828
British Columbia Telecom............ 112,300 2,058,515
Corel Corporation*.................. 139,500 1,813,500
-----------
$ 6,326,843
-----------
DENMARK -- 4.8%
Berendsen Sophus A/S Class A........ 1,228 $ 137,438
Berendsen Sophus A/S Class B........ 16,630 1,868,707
Carlsburg A/S Pfd Class B........... 34,727 1,935,521
Icopal Group........................ 5,400 1,300,971
ISS International Service Sys. A/S.. 54,200 1,218,087
Novo-Nordisk AS..................... 19,000 2,596,187
Radiometer A/S...................... 32,250 2,307,713
-----------
$ 11,364,624
-----------
FRANCE -- 10.0%
Bongrain SA......................... 3,500 $ 1,968,716
Carrefour Supermarche............... 4,200 2,543,068
Castorama Dubois Inv................ 14,300 2,337,311
Comptoirs Modernes SA............... 6,504 2,107,578
Docks De France SA.................. 11,200 1,698,232
Groupe Danone....................... 10,571 1,740,738
L'Air Liquide SA.................... 12,321 2,036,446
LeGrand SA.......................... 12,100 1,864,289
L'Oreal SA.......................... 7,350 1,963,795
LVMH Moet-Hennessy SA ADR.......... 55,220 2,312,338
Pernod Ricard SA.................... 23,280 1,320,390
Synthelabo.......................... 28,900 1,807,005
-----------
$ 23,699,906
-----------
GERMANY -- 3.3%
Bayerische Motoren Werke AG......... 3,109 $ 1,590,752
Beiersdorf AG....................... 2,700 1,888,966
Douglas Holdings AG................. 64,000 2,254,368
Dyckerhoff AG....................... 3,950 846,920
Heidelberger Zement AG ............. 1,980 1,240,515
-----------
$ 7,821,521
-----------
HONG KONG -- 6.7%
China Light & Power Co. Ltd. ADR.... 311,276 $ 1,433,177
Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,641,706
Hang Seng Bank Ltd. ADR............. 267,195 2,393,052
Hong Kong Aircraft Engineering Co... 741,000 1,916,586
Hong Kong & China Gas Co. ADR....... 939,132 1,512,097
Hong Kong Electric Holdings Ltd.ADR 530,520 1,739,310
Johnson Electric Holdings Ltd....... 897,500 1,601,746
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,595,593
Swire Pacific Ltd. ADR.............. 261,400 2,028,464
-----------
$ 15,861,731
-----------
IRELAND -- 1.6%
Fyffes PLC.......................... 922,000 $ 1,591,722
Greencore Group PLC................. 255,000 2,286,734
-----------
$ 3,878,456
-----------
ITALY -- 0.6%
Sirti SPA........................... 241,000 $ 1,354,999
-----------
<PAGE>
JAPAN -- 10.5%
Chudenko Corp....................... 48,300 $ 1,653,598
Daiichi Pharmaceutical Co., Ltd..... 98,000 1,393,230
Ito-Yokado Co., Ltd. ADR............ 8,750 2,153,594
Kurita Water Industries Ltd......... 81,000 2,154,255
Kyodo Printing Co. Ltd.............. 138,000 1,721,663
National House Industrial Co., Ltd.. 90,000 1,645,068
Nintendo Corporation Ltd............ 26,700 2,027,031
Ono Pharmaceutical Co. Ltd.......... 29,000 1,113,443
Santen Pharmaceutical Co., Ltd...... 66,000 1,500,000
Seven Eleven Japan Co., Ltd......... 19,800 1,394,043
Taisho Pharmaceutical Co., Ltd...... 75,000 1,479,691
Takasago Thermal Engineering Co..... 93,000 1,663,927
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,975,242
York-Benimaru Co., Ltd.............. 42,000 1,604,449
Yurtec Corp......................... 82,950 1,452,026
-----------
$ 24,931,260
-----------
MALAYSIA -- 4.7%
Amalgamated Steel Mills Berhad......2,298,000 $ 1,710,131
Genting Berhad...................... 200,000 1,669,489
Guinness Anchor Berhad.............. 988,000 1,851,746
Hong Leong Indus Berhad............. 363,000 1,929,559
Perlis Plantations Berhad........... 532,000 1,665,315
Sime Darby Berhad................... 829,200 2,203,843
-----------
$ 11,030,083
-----------
MEXICO -- 1.8%
Cifra S.A. ADR..................... 895,000 $ 940,735
Kimberly Clark De Mexico ADR........ 64,900 1,962,634
Telefonos de Mexico ADR............ 40,400 1,287,750
-----------
$ 4,191,119
-----------
NETHERLANDS -- 9.8%
CSM N.V............................ 47,095 $ 2,050,028
Elsevier Dutch Certificates......... 159,900 2,127,890
Getronics N.V....................... 48,014 2,239,319
Hagemeyer N.V....................... 37,740 1,966,676
Heineken N.V........................ 13,375 2,367,926
Koninklijke Ahold N.V............... 63,176 2,573,240
Nutricia............................ 29,000 2,340,775
Polygram............................ 28,700 1,520,577
Unilever N.V........................ 12,900 1,808,936
Verenigde Neder. Uitgeversbedrijven. 16,600 2,274,100
Wolters Kluwer N.V.................. 20,400 1,925,701
-----------
$ 23,195,168
-----------
NEW ZEALAND -- 0.8%
Wilson & Horton..................... 320,000 $ 1,913,302
-----------
SINGAPORE -- 2.4%
Asia Pacific Breweries Ltd.......... 272,000 $ 1,615,499
Cycle & Carriage Ltd. Ord........... 199,000 1,983,950
Singapore Press Holdings Ltd........ 115,200 2,036,343
-----------
$ 5,635,792
-----------
SOUTH AFRICA -- 0.9%
South African Breweries Ltd......... 58,500 $ 2,142,299
-----------
SPAIN -- 2.6%
Banco Popular Espanol............... 11,600 $ 2,133,980
Empresa Nac de Electicidad SA....... 40,600 2,293,767
Repsol S.A.......................... 55,740 1,822,093
-----------
$ 6,249,840
-----------
SWEDEN -- 3.6%
Astra AB Class B.................... 58,500 $ 2,317,530
Gambro AB Series B.................. 121,700 2,309,802
Gullspangs Kraft - "B" Free......... 155,000 2,264,734
Hennes & Mauritz AB Class B........ 31,600 1,761,175
-----------
$ 8,653,241
-----------
SWITZERLAND -- 4.7%
Nestle SA ADR....................... 34,600 $ 1,918,459
Roche Holding AG - Genussch......... 270 2,135,798
Sandoz AG........................... 2,800 2,563,218
SMH-Sch. Ges. Fuer AG............... 14,750 1,930,779
SMH-Sch. Ges. Fuer - New AG......... 470 281,132
Societe Generale de Surv. Hold. SA.. 1,175 2,332,582
-----------
$ 11,161,968
-----------
<PAGE>
UNITED KINGDOM -- 19.6%
Allied Colloids Group PLC........... 920,000 $ 1,900,251
BTR*................................ 4,178 4,315
BTR Ltd. PLC........................ 359,908 1,838,903
BTR Ltd.*........................... 3,287 1,047
Cable & Wireless PLC ADR........... 99,700 2,106,163
Christian Salvesen PLC.............. 347,200 1,428,884
Farnell Electronics PLC............. 182,700 2,038,622
Grand Metropolitan PLC ADR......... 55,900 1,607,125
Halma PLC........................... 709,333 1,927,790
Kwik Save Group PLC................. 173,000 1,343,345
LaPorte PLC......................... 167,070 1,738,380
Marks & Spencer PLC................. 60,700 424,202
Marks & Spencer PLC ADR ............ 30,700 1,286,947
Morrison (Wm.) Supermarket.......... 850,000 1,848,070
Nurdin & Peacock PLC................ 624,000 1,477,835
Pearson PLC......................... 207,076 2,005,107
Polypipe PLC........................ 720,000 1,967,962
Powerscreen Int'l................... 433,100 2,602,979
Reckitt & Colman PLC................ 157,176 1,739,171
Sainsbury (J.) PLC.................. 267,292 1,629,285
Scapa Group PLC..................... 561,873 1,937,147
Securicor Group -A-................. 100,000 1,374,405
Seibe PLC........................... 220,724 2,719,994
Smith & Nephew PLC.................. 686,730 1,994,339
Smiths Industries PLC............... 210,100 2,075,174
Tesco PLC........................... 417,060 1,923,652
Weir Group PLC...................... 407,700 1,332,798
Wolseley PLC........................ 317,600 2,224,480
-----------
$ 46,498,372
-----------
TOTAL EQUITY INTERESTS -- 97.0%
(identified cost, $189,163,858) $ 230,107,432
RESERVE FUND -- 2.7%
Face Amount
------------
American Express Corp., 5.65%, 1/02/96
(at amortized cost)...............$6,470,000 6,470,000
-----------
TOTAL INVESTMENTS -- 99.7%
(identified cost, $195,633,858) $236,577,432
OTHER ASSETS,
LESS LIABILITIES -- 0.3% 598,514
-----------
NET ASSETS -- 100% $237,175,946
============
<FN>
* Non-income-producing security.
ADR: American Depository Receipts
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $195,633,858
Unrealized appreciation................ 40,943,574
------------
Total value (Note 1A)................ $236,577,432
Cash..................................... 2,628
Dividends and interest receivable........ 436,970
Receivable for refundable foreign taxes
withheld............................... 373,785
Receivable for fund shares sold.......... 126,823
------------
Total Assets........................... $237,517,638
------------
LIABILITIES:
Payable for fund shares reacquired....... $ 302,551
Trustees fees payable.................... 370
Custodian fee payable (Note 3)........... 25,706
Accrued expenses and other liabilities... 13,065
------------
Total Liabilities......................$ 341,692
------------
NET ASSETS.................................. $237,175,946
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost of
shares reacquired........................ $198,077,233
Accumulated undistributed net realized loss
on investments and foreign currency
(computed on the basis of identified cost) (3,217,931)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost) 40,958,703
Undistributed net investment income......... 1,357,941
------------
Net assets applicable to outstanding shares $237,175,946
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 16,057,236
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.77
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 5,476,637
Interest............................... 215,791
Less: Foreign taxes................... (707,978)
------------
Total Income......................... $ 4,984,450
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,682,897
Administrator fee (Note 2)............. 270,853
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,088
Custodian fee (Note 2)................. 306,333
Transfer and dividend disbursing agent fees 21,522
Shareholder communication expense...... 23,696
Distribution expenses (Note 3)......... 436,177
Audit services......................... 37,000
Legal services......................... 1,445
Registration costs..................... 17,063
Printing............................... 4,395
Interest expense....................... 2,878
Miscellaneous.......................... 10,316
------------
Total Expenses....................... $ 2,816,663
------------
Net Investment Income.............. $ 2,167,787
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized loss on investment and foreign
currency transactions (identified
cost basis) .......................... $ (650,735)
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 25,147,505
------------
Net realized and unrealized gain on
investments and foreign currency... $ 24,496,770
------------
Net increase in net assets
from operations.................... $ 26,664,557
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
=======================================================================================================================
Year Ended
December 31,
----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................................ $ 2,167,787 $ 1,821,338
Net realized gain (loss) on investment and foreign currency transactions..... (650,735) 238,478
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 25,147,505 (7,495,702)
------------ ------------
Increase (decrease) in net assets from operations.................... $ 26,664,557 $ (5,435,886)
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1D).................................. $ 182,554 $ 655,170
------------ ------------
Distributions to shareholders from net investment income....................... $ (1,602,294) $ (1,467,856)
------------ ------------
Net increase from fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ 11,699,493 $ 106,409,645
------------ ------------
Net increase in net assets............................................ $ 36,944,310 $ 100,161,073
NET ASSETS:
At beginning of year........................................................... 200,231,636 100,070,563
------------ ------------
At end of year................................................................. $ 237,175,946 $ 200,231,636
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,357,941 $ 1,579,133
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
============================================================================================================================
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520
--------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115
Net realized and unrealized gain (loss)
on investments..................... 1.638 (0.347) 2.853 (0.524) 1.515
--------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 1.780 $ (0.220) $ 2.960 $ (0.430) $ 1.630
--------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ (0.100) $ (0.100) $ (0.070) $ (0.090) $ (0.110)
--------- --------- --------- --------- ---------
Net asset value, end of year................ $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040
========== ========== ========== ========== ==========
Total Return(1)............................. 13.61% (1.64%) 28.22% (3.94%) 17.21%
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $237,176 $200,232 $100,071 $ 74,409 $ 51,802
Ratio of expenses to average daily net
assets............................. 1.29% 1.31% 1.46% 1.51% 1.67%
Ratio of net investment income to average
daily net assets................... 0.99% 1.00% 0.67% 0.81% 1.12%
Portfolio Turnover Rate................ 12% 12% 30% 15% 23%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
Wright International Blue Chip Equities Fund (WIBC) is a diversified series
of The Wright Managed Equity Trust (the "Trust"). The Trust is registered under
the Investment Company Act of 1940, as amended, as an open-end, management
investment company. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities for which closing sale prices are not available are
valued at the mean between the latest bid and asked prices. Short-term
obligations maturing in 60 days or less are valued at amortized cost, which
approximates value. Securities for which market quotations are unavailable
are appraised at their fair value as determined in good faith by or at the
direction of the Trustees.
B. Foreign Currency Translation -- Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Federal Taxes -- WIBC's policy is to comply with the provisions of the
Internal Revenue Code (the Code) applicable to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. Withholding
taxes on foreign dividends have been provided for in accordance with the
Trust's understanding of the applicable country's tax rules and rates.
At December 31, 1995, WIBC, for federal income tax purposes, had a capital
loss carryover of $3,217,931, which will reduce taxable income arising from
future net realized gain on investments, if any, to the extent permitted
by the Code, and thus will reduce the amount of the distribution to
shareholders which would otherwise be necessary to relieve WIBC of any
liability for federal income or excise tax. Pursuant to the Code, such
capital loss carryover will expire as follows:
1999 2000 2001 2003
-----------------------------------------------------
$924,334 $1,404,904 $250,866 $637,827
-----------------------------------------------------
D. Equalization -- WIBC follows the accounting practice known as equalization
by which a portion of the proceeds from sales and costs of reacquisitions
of Fund shares, equivalent on a per-share basis to the amount of
undistributed net investment income on the date of the transaction, is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales or
reacquisitions of Fund shares.
E. Distributions -- The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gain. During the year ended
December 31, 1995, the following amounts were reclassified due to the
differences between book and tax accounting created primarily by the
utilization of redemption distributions for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
Accumulated Undistributed Undistributed
Paid-in Net Realized Loss on Investment Net Investment
Capital and Foreign Currency Transactions Income
----------------------------------------------------------------
$951,294 $17,945 $(969,239)
----------------------------------------------------------------
These changes had no effect on the net assets per share.
<PAGE>
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. However, if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as the Fund is informed of the ex-dividend date. Interest income
is recorded on the accrual basis.
G. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the year ended December 31, 1995, the effective annual rate was 0.77% for
WIBC. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1995, the effective annual rate was 0.12% for WIBC. The custodian fee was paid
to Investors Bank & Trust Company (IBT) for its services as custodian of the
Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant
to the custodian agreement, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Trust maintains with
IBT. All significant credits are reported as a reduction of expenses in the
Statement of Operations. For the year ended December 31, 1995, there were no
such reported amounts. Certain of the Trustees and officers of the Trust are
Directors/Trustees and/or officers of the above organizations. Except as to
Trustees of the Trust who are not affiliated with Wright or Eaton Vance,
Trustees and officers receive remuneration for their services to the Trust out
of the fees paid to Wright and Eaton Vance.
See Note 3.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that WIBC will
pay the Principal Underwriter, Wright Investors' Service Distributors, Inc., a
subsidiary of Wright, an annual rate of 2/10 of 1% of WIBC's average daily net
assets for activities primarily intended to result in the sale of WIBC's shares.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in WIBC shares were as follows:
<TABLE>
Year Ended December 31,
------------------------------------------------------------
1995 1994
---------------------------- ---------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold ................................................. 4,605,546 $ 64,343,250 12,245,362 $165,447,724
Issued to shareholders in payment of distributions
declared.............................................. 78,962 1,136,990 88,270 1,142,033
Reacquired............................................. (3,919,612) (53,780,747) (4,503,339) (60,180,112)
----------- ------------ ------------ -------------
Net increase..................................... 764,896 $ 11,699,493 7,830,293 $106,409,645
============ ============= ============= =============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations, for
the year ended December 31, 1995, were as follows:
- ------------------------------------------------------
Purchases............................ $32,858,249
=============
Sales................................ $25,390,082
=============
- ------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
- ---------------------------------------------------------
Aggregate cost....................... $195,633,858
=============
Gross unrealized appreciation........ $ 48,243,565
Gross unrealized depreciation........ (7,299,991)
------------
Net unrealized appreciation.......... $ 40,943,574
=============
- --------------------------------------------------------
(7) FINANCIAL INSTRUMENTS
WIBC may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. WIBC holds no such instruments at
December 31, 1995.
(8) LINE OF CREDIT
WIBC participates with other funds managed by Wright in a line of credit
with a bank which allows the Funds to borrow up to $20,000,000 collectively. The
line of credit consists of a $10,000,000 committed facility and a $10,000,000
uncommitted facility. Interest is charged to each fund based on its borrowings,
at a rate equal to the bank's base rate. In addition, the funds pay a prorated
commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of
any borrowing. WIBC did not have any significant borrowings under the line of
credit during the year ended December 31, 1995.
(9) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of WIBC, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets, while
growing in volume and sophistication, are generally not as developed as those in
the United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of WIBC's assets. WIBC may be unable to sell securities where the
registration process is incomplete and may experience delays in receipt of
dividends.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wright International Blue Chip Equities Fund of
The Wright Managed Equity Trust as of December 31, 1995 and the related
statement of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1995 and 1994, and the financial
highlights for each of the years in the five-year period ended December 31,
1995. These financial statements and financial highlights are the responsibility
of the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Wright International
Blue Chip Equities Fund of The Wright Managed Equity Trust as of December 31,
1995, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
- -----------------------------------------------------------------------------
Description of art work on the back cover of the report
Three thin vertical,dark blue lines on the right side of the page.
- -----------------------------------------------------------------------------
WRIGHT
INTERNATIONAL
BLUE CHIP
EQUITIES FUND
ANNUAL
REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President, Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
<PAGE>
- -------------------------------------------------------------------------------
Description of the art work on the front cover of the report
Three thin vertical red lines on the right side of the page.
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1995
THE WRIGHT
MANAGED
INCOME TRUST
THE WRIGHT MANAGED
INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED
INVESTMENT FUNDS
===============================================================================
WRIGHT "TRUE BLUE CHIP" INVESTMENT FUNDS INCLUDE A DIVERSIFIED COLLECTION OF
PROFESSIONALLY MANAGED FIXED INCOME VEHICLES INTENDED FOR INVESTMENT PORTFOLIO
USE. THEY CAN BE USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY
OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES
CHARGES), STRATEGIES CAN BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS
DESIRED TO ADJUST TO CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS.
FIVE FIXED-INCOME FUNDS
THERE ARE FIVE FIXED-INCOME PORTFOLIOS OF BONDS AND OTHER DEBT SECURITIES, EACH
OF WHICH HAS A DIFFERENT INVESTMENT OBJECTIVE AND DIFFERENT INVESTMENT POLICIES.
INVESTORS MAY SELECT ANY OF THE PORTFOLIOS OR MAY SPREAD THEIR INVESTMENTS AMONG
MORE THAN ONE.
WRIGHT U.S. TREASURY FUND (WUSTB) is invested in U.S. Treasury bills, notes and
bonds, which are guaranteed as to principal and interest by the full faith and
credit of the U.S. Government, and which are not expected to be taxable by
certain state or municipal governments. Maturities are relatively long.
Dividends are accrued daily and paid monthly.
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB), like WUSTB, is a diversified
portfolio concentrating on bonds and other obligations of the U.S. Government,
which are guaranteed as to principal and interest by the full faith and credit
of the U.S. Government. The average weighted maturity varies from one to five
years. This portfolio is designed to appeal to the investor seeking a high level
of income that is normally somewhat less variable and normally somewhat higher
than that available from short-term money market instruments and who is also
tolerant of modest fluctuation in capital (i.e. compared with somewhat greater
fluctuation likely with longer term fixed income securities). Dividends are
accrued daily and paid monthly.
WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality
corporate bonds and other debt securities of varying maturities which, in the
Adviser's opinion, will achieve the portfolio objective of best total return,
i.e. the best total of ordinary income plus capital appreciation. Accordingly,
investment selections and maturities may differ depending on the particular
phase of the interest rate cycle. Dividends are accrued daily and paid monthly.
WRIGHT INSURED TAX-FREE BOND FUND (WTFB) is a diversified portfolio invested in
high-grade municipal bonds and other intermediate or long-term debt securities
that provide current interest income which is exempt from Federal income taxes.
The portfolio limits its investments to obligations exempt from Federal income
tax which at the time of purchase are insured as to principal and interest. The
portfolio will have an average weighted maturity that produces the best
compromise between generous return and stability of principal. Dividends are
accrued daily and paid monthly.
WRIGHT CURRENT INCOME FUND (WCIF) may be invested in a variety of securities and
may use a number of strategies to produce a high level of income with reasonable
stability of principal. Currently, this portfolio is primarily invested in
mortgage Participation Certificates issued by the Government National Mortgage
Association (GNMA). GNMA guarantees that the fund will receive timely principal
and interest payments. The Fund reinvests all principal payments. Dividends are
accrued daily and paid monthly.
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES.....................Inside Front Cover
LETTER TO
SHAREHOLDERS................................... 1
WRIGHT MANAGED INCOME FUNDS --
Dividend Distributions....................... 5
WRIGHT U.S. TREASURY
FUND (WUSTB) --
Portfolio of Investments..................... 7
Financial Statements......................... 8
WRIGHT U.S. TREASURY
NEAR TERM FUND (WNTB) --
Portfolio of Investments.................... 11
Financial Statements.........................12
WRIGHT TOTAL RETURN
BOND FUND (WTRB) --
Portfolio of Investments.....................15
Financial Statements.........................18
WRIGHT INSURED TAX FREE
BOND FUND (WTFB) --
Portfolio of Investments.....................21
Financial Statements.........................24
WRIGHT CURRENT
INCOME FUND (WCIF) --
Portfolio of Investments.....................27
Financial Statements.........................32
<PAGE>
REPORT TO SHAREHOLDERS
===============================================================================
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB) earned a 7.4% total investment return in
the fourth quarter of 1995, double the 3.6% return reported for the Lipper
Fixed-Income Fund average. For all of 1995, the WUSTB had a total investment
return of 28.2%. Over the past ten years, it has averaged a 10.2% annual rate of
return, comparing favorably with the 8.1% annual rate of return in the Lipper
Bond Fund average.
As its name suggests, the U.S. Treasury Fund holds U.S. Treasury securities
exclusively. At the end of 1995, average yield to maturity was 6.2%, down from
6.8% on September 30. Currently, Fund holdings have an average maturity of 18.9
years and an average duration of 10.1 years, down slightly from 19.2 years and
10.2 years, respectively, at September 30. Treasury yields in the 20-year
maturity range declined about 60 basis points over the course of the fourth
quarter of 1995.
Wright believes that a resolution of the budget impasse in Washington and
additional Fed easing would clear the way for a further reduction in long-term
interest rates, although of a smaller magnitude than the decline seen in 1995.
With inflation not expected to exceed 3% any time soon and further Federal
Reserve easing likely early in 1996, long-term bond yields could decline another
25-50 basis points over the course of 1996, in Wright's view.
WRIGHT TOTAL RETURN BOND FUND
After a temporary bout of weakness in the third quarter, the bull market in
bonds resumed in the final period of 1995, with yields on 10-year U.S. Treasury
bonds declining 60 basis points to 26-month lows. Declining interest rates
propelled the Wright Total Return Bond Fund (WTRB) to an investment return of
5.7% for the fourth quarter, one-to-two percentage points above the Lehman
Government/Corporate Bond average (4.7%) and the Lipper Fixed-Income Fund
average (3.6%).
The strong fourth quarter brought the return on the WTRB for all of 1995 to
22.0%, well above the 15.2% return for the Lipper Fixed-Income Fund average. For
the five years through December 1995, the WTRB Fund's 9.4% average compound
annual rate of total investment return is nominally ahead of the Lipper Fund
average return. Since it began in July 1983, the Wright Total Return Bond Fund
has averaged a 10.5% annual rate of total investment return, more than one
percentage point ahead of the 9.2% return for the average Lipper Bond Fund over
the same period.
At the end of 1995, WTRB Fund's holdings consisted of 49% U.S. Treasury
securities, 12% U.S. government agencies and 39% high-quality corporate bonds.
The Fund's average maturity was moved up to 11.4 years over the fourth quarter
from 9.9 years at the end of the third quarter, while duration climbed to 7.5
years from 6.8 years. At December 31, 1995, WTRB's average yield to maurity was
6.0%, versus 6.5% three months earlier.
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
Yields on Treasury securities in the two-to-three year maturity range declined
nearly 70 basis points during the fourth quarter of 1995. The Wright U.S.
Treasury Near Term Fund (WNTB), with an average maturity of 2.5 years at the end
of 1995 (down from 2.8 years three months earlier), saw its average yield to
maturity decline to 5.3% from 5.9%. The WNTB Fund earned a total return of 2.6%
in the final quarter of the year, bringing its full-year return to 11.9%. Since
inception in 1983, it has averaged an 8.5% annual rate of total return. At the
end of the fourth quarter, 75% of WNTB's holdings were U.S. Treasury securities
and 25% were government agency issues.
Wright believes that the Federal Reserve, having reduced interest rates twice
during 1995, will continue to ease monetary policy in early 1996, resulting in
further declines in short-term interest rates. While returns on near-term bonds
are likely to exceed those on Treasury bills in the year ahead, they are not
likely to match those earned in 1995.
WRIGHT CURRENT INCOME FUND
Mortgage rates declined over 50 basis points during the fourth quarter of 1995
and over 200 basis points for the full year. As a result of these declines, the
Wright Current Income Fund (WCIF) had total returns of 3.4% in the final quarter
of 1995 (versus 3.6% estimated for the Morningstar Government Mortgage Fund
average) and 17.5% for all of 1995 (15.7% for the Morningstar average).
The Wright Current Income Fund, which pays its dividend monthly, had a current
yield of 6.5% at the end of 1995, down from 6.6% at September 30. With inflation
not likely to get much above 3% in the near future, the Fund's yield, along with
its stability, are attractive for income-oriented investors, in Wright's view.
WCIF holds only mortgage-backed securities (Ginnie Maes) backed by the full
faith and credit of the U.S. government; it does not hold any derivative
securities.
WRIGHT INSURED TAX FREE BOND FUND
The Wright Insured Tax Free Bond Fund (WTFB) holds AAA-insured tax-exempt
municipal securities. For the three months through December 1995, WTFB had a
total return of 2.1%, compared with a 4.2% return estimated for the average
insured tax free bond fund. For all of 1995, WTFB's 11.6% return compares with
15.1% for the average tax exempt fund. WTFB's average annual rate of return
since inception in April 1985 is 7.2%, as compared with 8.4% for the average
insured tax free bond fund over the same period. At December 31, the average
yield to maturity of WTFB holdings was 4.9%, versus 5.4% three months earlier;
the average maturity of Fund holdings was 8.4 years, little changed for the
quarter.
<PAGE>
It should be understood that performance data quoted herein represents past
performance and that the investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
Sincerely,
Peter M. Donovan
President
February 1996
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright U.S. Treasury Fund +28.2% +11.3% +10.2%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lipper Fixed Income Funds +15.2% +9.3% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY FUND on 12/31/85
would have grown to $26,448 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S. Lehman Gov't/Co Lipper Fixed
Treasury Fund Index Income Funds
--------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,991 $11,562 $11,270
12/31/87 $11,636 $11,827 $11,413
12/31/88 $12,520 $12,723 $12,316
12/31/89 $14,557 $14,535 $13,476
12/31/90 $15,478 $15,739 $14,050
12/31/91 $18,196 $18,276 $16,603
12/31/92 $19,482 $19,662 $17,910
12/31/93 $22,580 $21,831 $19,642
12/31/94 $20,633 $21,065 $18,998
12/31/95 $26,448 $25,119 $21,889
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY NEAR TERM FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
-------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright U.S. Treasury Near Term Fund +11.9% +7.1% +7.6%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Morningstar Gov't (1-5 Yrs) Funds e+11.4% e+6.7% e+7.4%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY NEAR TERM FUND on 12/31/85
would have grown to $20,724 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S. Lehman Gov't/Corp Morningstar Gov't
Treasury Near Term Index (1-5 Yrs) Funds
----------------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,312 $11,562 $11,221
12/31/87 $11,576 $11,827 $11,549
12/31/88 $12,242 $12,723 $12,314
12/31/89 $13,609 $14,535 $13,644
12/31/90 $14,730 $15,739 $14,818
12/31/91 $16,656 $18,276 $16,760
12/31/92 $17,698 $19,662 $17,692
12/31/93 $19,106 $21,831 $18,774
12/31/94 $18,515 $21,065 $18,390
12/31/95 $20,724 $25,119 $20,484
</TABLE>
<PAGE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Total Return Bond Fund +22.0% +9.4% +8.9%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lipper Fixed Income Funds +15.2% +9.3% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 12/31/85 would have grown to $23,424
by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Total Return Lehman Gov't/Co Lipper Fixed
Bond Fund Index Income Funds
--------------------------------------------------------------------
<C> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $12,054 $11,562 $11,270
12/31/87 $11,676 $11,827 $11,413
12/31/88 $12,522 $12,723 $12,316
12/31/89 $14,223 $14,535 $13,476
12/31/90 $14,976 $15,739 $14,050
12/31/91 $17,279 $18,276 $16,603
12/31/92 $18,510 $19,662 $17,910
12/31/93 $20,551 $21,831 $19,642
12/31/94 $19,205 $21,065 $18,998
12/31/95 $23,424 $25,119 $21,889
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT TAX-FREE BOND FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Tax-Free Bond Fund +11.6% +7.0% +7.1%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lehman Municipal Bond index +17.5% +8.6% +9.2%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TAX-FREE BOND FUND on 12/31/85
would have grown to $19,871 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Tax-Free Lehman Gov't/Corp Lehman Municipal
Bond Fund Index Bond index
---------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,467 $11,562 $11,932
12/31/87 $11,726 $11,827 $12,111
12/31/88 $12,479 $12,723 $13,341
12/31/89 $13,366 $14,535 $14,779
12/31/90 $14,158 $15,739 $15,990
12/31/91 $15,646 $18,276 $17,784
12/31/92 $16,884 $19,662 $19,351
12/31/93 $18,554 $21,831 $21,729
12/31/94 $17,799 $21,065 $20,606
12/31/95 $19,871 $25,119 $24,202
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT CURRENT INCOME FUND
Growth of $10,000 invested 4/30/87* through 12/31/95
Annual Total Return
---------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
<S> <C> <C> <C>
Wright Current Income Fund +17.5% +8.3% +9.0%
Lehman Gov't/Corp Index +19.2% +9.8% +9.5%
Lehman Mtg-Backed index +16.8% +8.7% +9.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT CURRENT INCOME BOND FUND on 4/30/87
would have grown to $21,162 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Current Lehman Gov't/Corp Lehman Mtg-Backed
Income Fund Index Index
-----------------------------------------------------------------------
<S> <C> <C> <C>
04/30/87 $10,000 $10,000 $10,000
12/31/87 $10,416 $10,356 $10,500
12/31/88 $11,323 $11,141 $11,416
12/31/89 $12,925 $12,728 $13,169
12/31/90 $14,198 $13,782 $14,581
12/31/91 $16,372 $16,004 $16,873
12/31/92 $17,475 $17,217 $18,048
12/31/93 $18,626 $19,117 $19,283
12/31/94 $18,016 $18,446 $18,972
12/31/95 $21,162 $21,996 $22,160
<FN>
NOTES: *: For comparison with other averages, the investment results are
shown from the first month-end since the Fund's inception. The investment
results of Wright Fixed Income Funds, Lipper's average of 1520 Fixed Income
Funds and Morningstar's average of 111 Government General Funds with
average maturities of 1 to 5 years are net of all fees and expenses charged
to the Funds. No fees or expenses have been deducted from the Lehman Bond
Indices. The Total Investment Return is the % return of an initial $10,000
investment made at the beginning of the period to the ending redeemable
value assuming all dividends and distributions are reinvested. Past
performance is not predictive of future performance.
</FN>
</TABLE>
<PAGE>
<TABLE>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- ----------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 12.25 246.633 3,021.26 -8.66% 7.22% 10.05% 10.15%
1/95 12.47 $0.078287 0.006278 248.277 3,096.01 -8.47% 8.45% 10.01% 10.31%
2/95 12.75 0.068402 0.005335 249.601 3,182.41 -1.72% 9.16% 10.67% 10.50%
3/95 12.75 0.076666 0.006013 251.102 3,201.55 3.28% 9.35% 10.51% 10.47%
4/95 12.89 0.072035 0.005588 252.505 3,254.79 6.83% 10.22% 10.44% 10.55%
5/95 13.77 0.074356 0.005400 253.869 3,495.77 15.41% 10.86% 10.51% 11.14%
6/95 13.85 0.072657 0.005246 255.200 3,534.53 17.86% 10.63% 10.52% 11.16%
7/95 13.56 0.074606 0.005502 256.605 3,479.56 12.50% 10.08% 10.48% 10.93%
8/95 13.75 0.074154 0.005393 257.988 3,547.34 15.54% 11.43% 10.42% 11.03%
9/95 13.91 0.071874 0.005167 259.321 3,607.16 21.17% 11.52% 10.59% 11.10%
10/95 14.20 0.073676 0.005188 260.667 3,701.47 25.00% 11.62% 10.57% 11.26%
11/95 14.44 0.073766 0.005108 261.999 3,783.26 27.20% 11.24% 10.44% 11.38%
12/95 14.71 0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51%
---------
Total $0.877698
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 9.92 249.659 2,476.61 -3.10% 6.35% 7.88% 8.25%
1/95 10.00 $0.051672 0.005167 250.975 2,509.75 -2.82% 6.80% 7.87% 8.31%
2/95 10.11 0.048232 0.004771 252.172 2,549.46 0.50% 7.08% 8.14% 8.40%
3/95 10.11 0.051589 0.005103 253.459 2,562.47 2.93% 7.18% 8.06% 8.39%
4/95 10.16 0.051314 0.005051 254.739 2,588.15 4.89% 7.45% 8.08% 8.42%
5/95 10.36 0.052921 0.005108 256.041 2,652.58 7.61% 7.54% 8.03% 8.58%
6/95 10.37 0.052615 0.005074 257.340 2,668.61 8.17% 7.43% 8.00% 8.57%
7/95 10.32 0.053425 0.005177 258.672 2,669.49 6.95% 7.15% 8.03% 8.51%
8/95 10.34 0.052851 0.005111 259.994 2,688.34 7.52% 7.38% 7.93% 8.52%
9/95 10.34 0.052174 0.005046 261.306 2,701.90 8.72% 7.32% 7.96% 8.50%
10/95 10.38 0.053507 0.005155 262.653 2,726.34 9.62% 7.27% 7.88% 8.52%
11/95 10.43 0.051860 0.004972 263.959 2,753.09 11.39% 7.17% 7.76% 8.55%
12/95 10.45 0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55%
---------
Total $0.625302
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 11.43 249.141 2,847.68 -6.57% 6.19% 9.33% 9.58%
1/95 11.59 0.062608 0.005402 250.518 2,903.50 -6.13% 7.19% 9.18% 9.69%
2/95 11.83 0.061940 0.005236 251.829 2,979.14 -0.74% 7.78% 9.86% 9.87%
3/95 11.86 0.064429 0.005432 253.197 3,002.92 3.45% 8.01% 9.73% 9.87%
4/95 11.97 0.062814 0.005248 254.526 3,046.68 6.35% 8.74% 9.62% 9.93%
5/95 12.54 0.062217 0.004961 255.789 3,207.59 12.22% 9.03% 9.42% 10.34%
6/95 12.58 0.062061 0.004933 257.051 3,233.70 13.60% 8.78% 9.39% 10.34%
7/95 12.41 0.062429 0.005031 258.344 3,206.05 10.56% 8.36% 9.46% 10.18%
8/95 12.52 0.063063 0.005037 259.645 3,250.76 11.99% 9.34% 9.32% 10.23%
9/95 12.60 0.062361 0.004949 260.930 3,287.72 15.10% 9.44% 9.44% 10.26%
10/95 12.75 0.062736 0.004920 262.214 3,343.23 17.44% 9.48% 9.31% 10.34%
11/95 12.95 0.062342 0.004814 263.477 3,412.02 20.36% 9.35% 9.16% 10.45%
12/95 13.12 0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53%
---------
Total $0.753282
</TABLE>
<PAGE>
<TABLE>
THE INCOME TRUST -- WRIGHT INSURED TAX-FREE BOND FUND (WTFB)
- -------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/85 $10.00 100.000 $1,000.00
12/94 11.02 170.912 1,883.45 -4.08% 5.89% -- 6.72%
1/95 11.11 $0.045820 0.004124 171.635 1,906.86 -3.95% 6.42% -- 6.80%
2/95 11.31 0.046146 0.004080 172.335 1,949.11 0.25% 6.63% -- 6.98%
3/95 11.37 0.044421 0.003907 173.008 1,967.10 4.36% 6.88% -- 7.02%
4/95 11.36 0.043871 0.003862 173.676 1,972.96 4.70% 7.11% -- 6.99%
5/95 11.55 0.044598 0.003861 174.347 2,013.71 6.42% 7.08% 7.09% 7.15%
6/95 11.49 0.043654 0.003799 175.009 2,010.86 6.46% 6.84% 7.08% 7.07%
7/95 11.56 0.044448 0.003845 175.682 2,030.89 5.79% 6.75% 7.20% 7.11%
8/95 11.63 0.043816 0.003767 176.344 2,050.88 6.60% 7.51% 7.35% 7.16%
9/95 11.63 0.044969 0.003867 177.026 2,058.81 8.07% 7.56% 7.62% 7.14%
10/95 11.70 0.043682 0.003734 177.687 2,078.94 10.12% 7.46% 7.46% 7.18%
11/95 11.76 0.043086 0.003664 178.338 2,097.26 12.83% 7.08% 7.26% 7.21%
12/95 11.75 0.042000 0.003575 178.976 2,102.96 11.64% 7.01% 7.11% 7.18%
---------
Total $0.530511
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF)
- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/14/87 $10.00 100.000 $1,000.00
12/94 9.71 185.309 1,799.35 -3.30% 6.86% -- 7.91%
1/95 9.87 $0.059081 0.005986 186.466 1,840.42 -1.97% 7.54% -- 8.13%
2/95 10.08 0.059476 0.005900 187.566 1,890.67 1.68% 8.01% -- 8.42%
3/95 10.06 0.058751 0.005840 188.662 1,897.94 5.38% 8.06% -- 8.38%
4/95 10.15 0.058044 0.005719 189.741 1,925.87 7.82% 8.64% -- 8.49%
5/95 10.45 0.056515 0.005408 190.767 1,993.51 11.54% 8.70% -- 8.86%
6/95 10.45 0.056713 0.005427 191.802 2,004.33 12.75% 8.46% -- 8.84%
7/95 10.39 0.057078 0.005494 192.856 2,003.77 10.29% 8.13% -- 8.74%
8/95 10.45 0.057155 0.005469 193.910 2,026.36 11.45% 8.57% -- 8.79%
9/95 10.49 0.057370 0.005469 194.971 2,045.25 14.44% 8.61% -- 8.82%
10/95 10.51 0.057266 0.005449 196.033 2,060.31 15.77% 8.57% -- 8.82%
11/95 10.59 0.056816 0.005365 197.085 2,087.13 17.52% 8.37% -- 8.90%
12/95 10.67 0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97%
---------
Total $0.690817
</TABLE>
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND (WUSTB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===================================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,500,000 U. S. Treasury Notes 8.500% 02/15/20 $130.656 $ 1,959,840 6.51% 6.06%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 141.531 849,186 8.21% 5.61%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 130.406 1,304,060 7.67% 6.66%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 165.859 2,156,167 8.44% 7.04%
1,000,000 U. S. Treasury Bonds 11.250% 02/15/15 160.078 1,600,780 7.03% 5.95%
2,000,000 U. S. Treasury Bonds 7.250% 05/15/16 114.187 2,283,740 6.35% 6.04%
1,400,000 U. S. Treasury Bonds 7.500% 11/15/16 117.250 1,641,500 6.40% 6.03%
1,500,000 U. S. Treasury Bonds 8.125% 08/15/19 125.734 1,886,010 6.46% 6.06%
550,000 U. S. Treasury Bonds 7.875% 02/15/21 123.141 677,276 6.40% 6.08%
500,000 U. S. Treasury Bonds 6.500% 08/15/05 106.531 532,655 6.10% 5.61%
-----------
Total Investments (identified cost, $12,564,565) -- 98.3% $14,891,214 6.84% 6.13%
======= =======
Other Assets, less Liabilities -- 1.7% 265,030
-----------
Net Assets -- 100.0% $15,156,244
============
Average Maturity -- 18.8 Years(1)
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 12,564,565
Unrealized appreciation................ 2,326,649
------------
Total value (Note 1A)................ $ 14,891,214
Cash..................................... 50,383
Interest receivable...................... 243,021
Receivable for Fund shares sold.......... 34,098
------------
Total Assets........................... $ 15,218,716
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 5,166
Payable to dividend disbursing agent..... 36,101
Investment Adviser fee payable........... 15,256
Trustees' fees payable................... 250
Custodian fee payable.................... 2,500
Accrued expenses and other liabilities... 3,199
------------
Total Liabilities...................... $ 62,472
------------
NET ASSETS.................................. $ 15,156,244
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 13,256,456
Accumulated net realized loss on investments
(computed on the basis of identified cost) (434,300)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 2,326,649
Undistributed net investment income......... 7,439
Net assets applicable to outstanding shares $ 15,156,244
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 1,030,135
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.71
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 1,219,456
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 65,539
Administrator fee (Note 3)............. 16,384
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,603
Distribution expenses (Note 4)......... 32,770
Custodian fee (Note 3)................. 34,697
Audit services......................... 23,583
Transfer and dividend disbursing agent fees 6,018
Shareholder communication expense...... 1,822
Registration costs..................... 15,140
Printing............................... 1,904
Legal services......................... 980
Miscellaneous.......................... 2,061
------------
Total expenses....................... $ 202,501
------------
Deduct --
Reduction of distribution expenses
by Principal Underwriter (Note 4)... $ 32,770
Reduction of Investment Adviser fee
(Note 3)............................ 17,515
Reduction of custodian fee (Note 3).. 4,754
------------
Total deductions..................... $ 55,039
------------
Net expenses......................... $ 147,462
------------
Net investment income.............. $ 1,071,994
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 529,670
Change in unrealized appreciation
of investments......................... 2,464,279
------------
Net realized and unrealized gain
on investments..................... $ 2,993,949
------------
Net increase in net assets
from operations.................... $ 4,065,943
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================
Year Ended
December 31,
-------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 1,071,994 $ 1,439,454
Net realized gain on investment
transactions......................................................... 529,670 358,064
Change in unrealized appreciation
of investments....................................................... 2,464,279 (3,989,643)
------------ ------------
Increase (decrease) in net assets from operations................. $ 4,065,943 $ (2,192,125)
Distributions to shareholders from net investment income................... (1,072,005) (1,439,554)
Net decrease from Fund share transactions
(Note 5) .............................................................. (4,496,109) (9,556,034)
------------ ------------
Net decrease in net assets........................................ $ (1,502,171) $ (13,187,713)
NET ASSETS:
At beginning of year....................................................... 16,658,415 29,846,128
------------ ------------
At end of year............................................................. $ 15,156,244 $ 16,658,415
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 7,439 $ 7,444
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================================================================
Year Ended December 31,
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.250 $ 14.360 $ 13.190 $ 13.220 $ 12.100
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902
Net realized and unrealized gain (loss)
on investments......................... 2.458 (2.110) 1.170 (0.030) 1.120
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 3.338 $ (1.230) $ 2.062 $ 0.881 $ 2.022
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.878) $ (0.880) $ (0.892) $ (0.911) $ (0.902)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220
========= ========= ========= ========= =========
Total Return(2)............................. 28.18% (8.66%) 15.90% 7.07% 17.56%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 15,156 $ 16,658 $ 29,846 $ 29,703 $ 33,857
Ratio of net expenses to average net assets 0.9% 0.9% 0.9% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 6.6% 6.9% 6.3% 7.1% 7.4%
Portfolio Turnover Rate.................. 8% 1% 12% 15% 15%
<FN>
(1)During each of the four years ended December 31, 1995, the operating
expenses of the Fund were reduced by an allocation of expenses to the
Investment Adviser or a reduction in distribution fee, or a combination
thereof. Had such action not been undertaken, the net investment income per
share and the ratios would have been as follows:
Year Ended December 31,
--------------------------------------------
1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.827 $ 0.854 $ 0.878 $ 0.898
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.2% 1.1% 1.0% 1.0%
========= ========= ========= =========
Net investment income.................... 6.2% 6.7% 6.2% 7.0%
========= ========= ========= =========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===================================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 7,000,000 U. S. Treasury Note 5.125% 03/31/98 $ 99.828 $ 6,987,960 5.13% 5.20%
2,000,000 U. S. Treasury Note 7.125% 10/15/98 104.812 2,096,240 6.80% 5.24%
3,000,000 U. S. Treasury Note 5.125% 12/31/98 99.656 2,989,680 5.14% 5.25%
3,450,000 U. S. Treasury Note 9.000% 05/15/98 108.281 3,735,695 8.31% 5.24%
2,000,000 U. S. Treasury Note 7.875% 11/15/99 108.719 2,174,380 7.24% 5.35%
2,000,000 U. S. Treasury Note 7.250% 11/15/96 101.656 2,033,120 7.13% 5.83%
2,100,000 U. S. Treasury Note 8.125% 02/15/98 105.750 2,220,750 7.68% 5.23%
2,000,000 U. S. Treasury Note 8.000% 08/15/99 108.656 2,173,120 7.36% 5.33%
1,500,000 U. S. Treasury Note 8.500% 02/15/00 111.437 1,671,555 7.63% 5.37%
3,000,000 U. S. Treasury Note 7.000% 04/15/99 105.062 3,151,860 6.66% 5.29%
2,000,000 U. S. Treasury Note 6.375% 01/15/99 103.109 2,062,180 6.18% 5.26%
3,000,000 U. S. Treasury Note 6.875% 03/31/97 101.969 3,059,070 6.74% 5.19%
5,000,000 U. S. Treasury Note 6.375% 06/30/97 101.656 5,082,800 6.27% 5.19%
7,000,000 U. S. Treasury Note 5.625% 08/31/97 100.641 7,044,870 5.59% 5.20%
6,500,000 U. S. Treasury Note 6.000% 11/30/97 101.469 6,595,485 5.91% 5.20%
1,500,000 U. S. Treasury Note 5.125% 06/30/98 99.797 1,496,955 5.14% 5.21%
2,000,000 U. S. Treasury Note 5.875% 08/15/98 101.578 2,031,560 5.78% 5.23%
20,000,000 U. S. Treasury Note 7.875% 04/15/98 105.594 21,118,800 7.46% 5.23%
12,500,000 U. S. Treasury Note 7.500% 11/15/01 110.141 13,767,625 6.81% 5.44%
2,000,000 U. S. Treasury Note 5.125% 03/31/96 99.969 1,999,380 5.13% 5.22%
12,000,000 U. S. Treasury Note 7.125% 02/29/00 106.453 12,774,360 6.69% 5.37%
5,000,000 Federal Home Loan Banks 8.250% 05/27/96 101.125 5,056,250 8.16% 5.38%
5,000,000 Federal Home Loan Banks 8.250% 06/25/96 101.359 5,067,950 8.14% 5.36%
5,500,000 Federal Home Loan Banks 8.000% 07/25/96 101.453 5,579,915 7.89% 5.36%
14,500,000 Federal Home Loan Banks 8.250% 09/25/96 102.016 14,792,320 8.09% 5.39%
1,150,000 Federal Home Loan Banks 8.600% 06/25/99 109.812 1,262,837 7.83% 5.47%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 99.115 3,369,910 5.06% 5.35%
----------- ------ ------
Total Investments (identified cost, $136,992,741) -- 98.5% $141,396,627 6.70% 5.31%
======= =======
Other Assets, Less Liabilities -- 1.5% 2,203,207
-----------
Net Assets -- 100.0% $143,599,834
============
Average Maturity -- 2.4 Years(1)
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $136,992,741
Unrealized appreciation................ 4,403,886
------------
Total value (Note 1A)................ $141,396,627
Cash..................................... 22,110
Receivable for Fund shares sold.......... 400,984
Interest receivable...................... 2,367,652
------------
Total Assets........................... $144,187,373
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 248,595
Payable to dividend disbursing agent..... 325,844
Trustees' fees payable................... 250
Custodian fee payable.................... 4,500
Accrued expenses and other liabilities... 8,350
------------
Total Liabilities...................... $ 587,539
------------
NET ASSETS.................................. $143,599,834
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
shares issued to shareholders in payment of
distributions declared), less cost of shares
redeemed................................. $160,668,525
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (21,682,260)
Unrealized appreciation of investments
(computed on the basis of identified cost) 4,403,886
Undistributed net investment income......... 209,683
Net assets applicable to outstanding shares $143,599,834
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 13,738,237
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.45
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 11,961,829
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 739,265
Administrator fee (Note 3)............. 129,501
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 2,170
Distribution expenses (Note 4)......... 347,507
Custodian fee (Note 3)................. 60,902
Transfer and dividend disbursing agent fees 14,130
Shareholder communication expense...... 22,064
Audit services......................... 30,983
Registration costs..................... 15,972
Printing............................... 1,992
Legal services......................... 1,579
Miscellaneous.......................... 7,245
------------
Total expenses....................... $ 1,373,310
Deduct --
Reduction of custodian fee........... 12,111
------------
Net expenses......................... $ 1,361,199
------------
Net investment income.............. $ 10,600,630
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (376,568)
Change in unrealized appreciation
of investments......................... 10,227,881
------------
Net realized and unrealized gain
on investments..................... $ 9,851,313
------------
Net increase in net assets
from operations.................... $ 20,451,943
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
===============================================================================
Year Ended
December 31,
-----------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 10,600,630 $ 16,679,095
Net realized loss on investment
transactions......................................................... (376,568) (6,936,070)
Change in unrealized appreciation
of investments....................................................... 10,227,881 (20,360,712)
--------------- ---------------
Increase (decrease) in net assets from operations................. $ 20,451,943 $ (10,617,687)
Distributions to shareholders from net investment income................... (10,580,700) (16,671,903)
Net decrease from Fund share transactions (Note 5)......................... (78,393,631) (141,505,123)
---------------- ---------------
Net decrease in net assets........................................ $ (68,522,388) $ (168,794,713)
NET ASSETS:
At beginning of year....................................................... 212,122,222 380,916,935
--------------- -------------
At end of year............................................................. $ 143,599,834 $ 212,122,222
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 209,683 $ 189,753
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
==================================================================================================================================
Year Ended December 31,
---------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.920 $ 10.840 $ 10.660 $ 10.750 $ 10.260
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795
Net realized and unrealized gain (loss)
on investments......................... 0.524 (0.920) 0.180 (0.090) 0.489
-------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 1.155 $ (0.332) $ 0.835 $ 0.649 $ 1.284
-------- -------- -------- -------- --------
Less distributions from net investment income $ (0.625) $ (0.588) $ (0.655) $ (0.739) $ 0.794)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750
========= ========= ========= ========= =========
Total Return(1)............................. 11.93% (3.10%) 7.95% 6.26% 13.08%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $143,600 $212,122 $ 380,917 $ 371,074 $232,407
Ratio of expenses to average net assets.. 0.8% 0.7% 0.7% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 6.2% 5.7% 6.0% 6.9% 7.7%
Portfolio Turnover Rate.................. 21% 33% 22% 6% 18%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 38.4%
- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL -- 3.7%
$ 1,500,000 GE Capital Corp 7.670% 05/22/02 $110.214 $ 1,653,210 6.96% 5.73%
2,000,000 GE Capital Corp 7.875% 12/01/06 113.345 2,266,900 6.95% 6.18%
700,000 Rockland Trust Co.(*) 9.500% 10/15/96 93.000 651,000 10.22% 19.39%
----------
$ 4,571,110
INDUSTRIALS -- 14.2%
$ 2,850,000 Abbott Labs 5.600% 10/01/03 $ 97.902 $ 2,790,207 5.72% 5.94%
2,000,000 Anheuser Busch 6.900% 10/01/02 105.252 2,105,040 6.56% 5.94%
2,000,000 Archer Daniels Midland Co 6.250% 05/15/03 101.803 2,036,060 6.14% 5.95%
2,500,000 Walt Disney Company 5.800% 10/27/08 97.283 2,432,075 5.96% 6.11%
1,400,000 Kimberly Clark 6.875% 02/15/14 104.190 1,458,660 6.60% 6.48%
1,500,000 Proctor & Gamble Co 8.000% 11/15/03 111.556 1,673,340 7.17% 6.13%
5,000,000 Sara Lee Corp. 5.750% 09/03/03 98.156 4,907,800 5.86% 6.05%
------------
$17,403,182
UTILITIES -- 20.5%
$ 4,100,000 AT&T Corp. 7.750% 03/01/07 $112.386 $ 4,607,826 6.90% 6.20%
5,000,000 Bell Atlantic - New Jersey 5.875% 02/01/04 99.365 4,968,250 5.91% 5.97%
5,000,000 Bellsouth Telecommunications 6.375% 06/15/04 102.756 5,137,800 6.20% 5.96%
1,000,000 Citizens Utilities Co 7.450% 01/15/04 108.968 1,089,680 6.84% 6.03%
2,000,000 Consolidated Edison 6.375% 04/01/03 101.145 2,022,900 6.30% 6.18%
2,000,000 Duke Power Co 7.000% 09/01/05 104.182 2,083,640 6.72% 6.41%
3,000,000 Pacific Bell 7.250% 07/01/02 107.027 3,210,810 6.77% 5.94%
2,000,000 Pacific Tel & Tel 6.500% 07/01/03 100.634 2,012,680 6.46% 6.39%
-------------
$25,133,586
<PAGE>
U.S. GOVERNMENT AGENCIES -- 12.0%
- ----------------------------------
$ 3,200,000 Federal Home Loan Banks 8.375% 10/25/99 $109.797 $ 3,513,504 7.63% 5.49%
4,600,000 Federal Home Loan Banks 8.600% 01/25/00 111.172 5,113,912 7.74% 5.50%
1,500,000 Federal Home Loan Banks 6.070% 06/30/03 101.467 1,522,005 5.98% 5.83%
1,700,000 Federal Home Loan Banks 5.600% 09/22/03 98.553 1,675,401 5.68% 5.84%
3,000,000 Federal Home Loan Banks 5.450% 10/29/03 97.582 2,927,460 5.59% 5.84%
------------
$14,752,282
U.S. TREASURIES -- 48.0%
$ 17,900,000 U.S. Treasury Bonds 7.500% 11/15/16 $117.250 $20,987,750 6.40% 6.03%
6,500,000 U.S. Treasury Bonds 6.250% 08/15/23 102.891 6,687,915 6.07% 6.03%
3,750,000 U.S. Treasury Bonds 8.250% 05/15/05 109.875 4,120,313 7.51% 6.81%
6,600,000 U.S. Treasury Bonds 6.500% 08/15/05 106.531 7,031,046 6.10% 5.61%
75,000 U.S. Treasury Notes 6.875% 03/31/97 101.969 76,477 6.74% 5.22%
100,000 U.S. Treasury Notes 4.375% 08/15/96 99.469 99,469 4.40% 5.24%
6,800,000 U.S. Treasury Notes 6.500% 05/15/05 106.391 7,234,588 6.11% 5.61%
2,000,000 U.S. Treasury Notes 6.250% 02/15/03 104.328 2,086,560 5.99% 5.50%
500,000 U.S. Treasury Notes 7.750% 12/31/99 108.516 542,580 7.14% 5.36%
1,700,000 U.S. Treasury Notes 7.500% 02/15/05 113.344 1,926,847 6.62% 5.61%
2,500,000 U.S. Treasury Notes 8.500% 02/15/00 111.437 2,785,925 7.63% 5.37%
3,000,000 U.S. Treasury Notes 7.750% 02/15/01 110.422 3,312,660 7.02% 5.40%
2,000,000 U.S. Treasury Notes 5.875% 11/15/05 102.250 2,045,000 5.75% 5.58%
----------
$58,937,130
-----------
<PAGE>
Total Investments (identified cost, $113,147,771) -- 98.4% $120,797,290 6.45% 6.04%
======= =======
Other Assets, Less Liabilities -- 1.6% 1,964,312
----------
Net Assets -- 100.0% $122,761,602
============
Average Maturity -- 9.1 Years(1)
<FN>
(*) Security priced by management
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $113,147,771
Unrealized appreciation................ 7,649,519
------------
Total value (Note 1A)................ $120,797,290
Cash..................................... 33,926
Receivable for Fund shares sold.......... 101,639
Interest receivable...................... 2,084,899
------------
Total Assets........................... $123,017,754
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 215,855
Payable for Fund shares reacquired....... 28,047
Trustees' fees payable................... 250
Custodian fee payable.................... 4,500
Accrued expenses and other liabilities... 7,500
------------
Total Liabilities...................... $ 256,152
------------
NET ASSETS.................................. $122,761,602
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $116,505,526
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (1,472,119)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 7,649,519
Undistributed net investment income......... 78,676
------------
Net assets applicable to outstanding shares $122,761,602
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 9,355,945
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $13.12
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 8,856,688
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 525,335
Administrator fee (Note 3)............. 110,899
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,473
Distribution expenses (Note 4)......... 254,493
Custodian fee (Note 3)................. 57,086
Audit services......................... 31,683
Transfer and dividend disbursing agent fees 12,309
Shareholder communication expense...... 15,708
Registration costs..................... 17,050
Legal services......................... 1,361
Printing............................... 2,010
Interest expense....................... 484
Miscellaneous.......................... 5,934
------------
Total expenses....................... $ 1,035,825
Deduct --
Reduction of custodian fee........... 9,007
------------
Net expenses......................... $ 1,026,818
------------
Net investment income.............. $ 7,829,870
-------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 411,969
Change in unrealized appreciation
of investments......................... 17,483,217
------------
Net realized and unrealized gain
on investments..................... $ 17,895,186
------------
Net increase in net assets
from operations.................... $ 25,725,056
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
Year Ended
December 31,
------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income...................................................... $ 7,829,870 $ 11,761,434
Net realized gain (loss) on investment
transactions............................................................. 411,969 (1,884,088)
Change in unrealized appreciation
of investments........................................................... 17,483,217 (23,935,733)
------------ ------------
Increase (decrease) in net assets from operations..................... $ 25,725,056 $ (14,058,387)
Distributions to shareholders from net investment income....................... (7,796,582) (11,757,984)
Net decrease from Fund share transactions (Note 5)............................. (38,663,606) (90,200,306)
------------ ------------
Net decrease in net assets............................................ $ (20,735,132) $(116,016,677)
NET ASSETS:
At beginning of year........................................................... 143,496,734 259,513,411
------------ ------------
At end of year................................................................. $ 122,761,602 $ 143,496,734
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS................................................................. $ 78,676 $ 46,213
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.430 $ 13.010 $ 12.610 $ 12.580 $ 11.700
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854
Net realized and unrealized gain (loss) on
investments............................ 1.685 (1.580) 0.580 0.030 0.880
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 2.443 $ (0.840) $ 1.369 $ 0.860 $ 1.734
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.753) $ (0.740) $ (0.789) $ (0.830) $ (0.854)
From net realized gain on investments.... -- -- (0.177) -- --
In excess of net realized gain on investments -- -- (0.003) -- --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.753) $ (0.740) $ (0.969) $ (0.830) $ (0.854)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580
========= ========= ========= ========= =========
Total Return(1)............................. 21.97% (6.57%) 11.03% 7.13% 15.38%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $122,762 $143,497 $259,513 $ 217,564 $134,728
Ratio of net expenses to average net assets 0.8% 0.8% 0.8% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 6.2% 6.1% 6.0% 6.7% 7.2%
Portfolio Turnover Rate.................. 50% 32% 36% 13% 56%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND (WTFB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==================================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(*)(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MUNICIPAL BONDS -- 98.8%
- ------------------------
EDUCATION -- 13.8%
$ 250,000 Berkley Calif Uni Sch Dist 6.150% 08/01/05 $111.657 $ 279,143 5.51% 4.63% M
25,000 Bristol Twp PA Sch Dist 8.700% 01/15/01 120.312 30,077 7.23% 4.19% M
25,000 Calcasieu Parish LA Sch Dist 9.100% 06/01/02 125.150 31,287 7.27% 4.54% M
300,000 Goshen-Chandler Ind Sch Bldg 5.950% 01/15/03 108.668 326,004 5.48% 4.50% M
150,000 Greensburg Salem PA Sch Dist 7.100% 01/01/09 108.137 162,206 6.57% 4.19% F
200,000 Mars Penn Area Sch Dist 6.550% 03/01/02 106.934 213,868 6.13% 4.19% F
150,000 Sumter SC Sch Dist 7.150% 06/01/09 110.209 165,314 6.49% 4.19% F
150,000 Williamsville NY Cent Sch Dist 6.500% 12/01/99 108.459 162,689 5.99% 4.14% M
----------
$ 1,370,588
----------
GENERAL OBLIGATION -- 45.0%
$ 125,000 Bristol County Rhode Island 5.125% 12/01/10 $ 98.967 $ 123,706 5.18% 5.22% M
150,000 Brookhaven NY Ser B 7.000% 05/01/04 116.383 174,575 6.01% 4.61% M
100,000 Central Lake Cnty IL 6.250% 05/01/99 106.478 106,514 5.87% 4.15% M
250,000 Cook County Ill Ser A 5.100% 11/05/05 102.332 255,830 4.98% 4.80% M
250,000 Cumberland Cnty NC 5.700% 02/01/05 108.764 271,910 5.24% 4.37% C
200,000 Fairbanks Northstar, Alaska 5.300% 03/01/04 103.888 207,776 5.10% 4.72% M
300,000 State of Massachusetts 4.125% 10/01/01 99.085 297,255 4.16% 4.30% M
250,000 Michigan Muni Bd Auth 4.950% 05/01/04 101.840 254,600 4.86% 4.68% M
195,000 New York, New York Ser C 6.000% 08/01/01 108.310 211,205 5.54% 4.31% M
250,000 New York, City of NY 7.000% 08/01/04 106.009 265,023 6.60% 3.98% C
125,000 New York City Ser A 7.000% 08/01/99 105.611 132,014 6.63% 4.23% C
200,000 O Fallon Missouri 5.350% 03/01/04 104.580 209,160 5.12% 4.35% C
200,000 Pennsylvania State 6.500% 11/01/04 111.756 223,512 5.82% 4.42% C
250,000 Prince Georges County MD 5.400% 09/01/02 105.602 264,005 5.11% 4.42% M
250,000 Providence Rhode Island 5.600% 01/15/05 105.436 263,590 5.31% 4.85% M
200,000 Smithfield Rhode Island 6.500% 04/15/02 106.677 213,354 6.09% 4.25% C
200,000 Snohomish County Washington 5.750% 12/01/10 103.520 207,040 5.55% 5.25% C
140,000 Summit County Ohio 5.550% 12/01/06 105.457 147,640 5.26% 4.85% P
200,000 Travis County Texas 6.400% 03/01/04 107.907 215,814 5.93% 4.66% C
250,000 West University Place TX 5.600% 02/01/03 105.416 263,540 5.31% 4.57% P
150,000 Wilmington Del 6.150% 07/01/05 108.653 162,980 5.66% 4.49% F
----------
$ 4,471,043
----------
<PAGE>
HEALTH CARE -- 13.2%
$ 250,000 Dade Cnty Fla Health Facs Aut 5.000% 05/15/05 $102.325 $ 255,813 4.89% 4.69% M
205,000 Decatur Illinois Hosp 6.400% 10/01/01 109.372 224,213 5.85% 4.53% M
250,000 Fulton De Kalb GA Hosp Auth 5.300% 01/01/05 103.472 258,680 5.12% 4.82% M
100,000 Massachusetts, State Health & Ed 7.300% 10/01/18 110.369 110,369 6.61% 4.99% C
200,000 Massachusetts, State Health & Edl Facs 4.500% 07/01/02 100.279 200,557 4.49% 4.45% M
250,000 Tallahassee Fla Health Fac 5.400% 12/01/01 104.682 261,705 5.16% 4.49% M
----------
$ 1,311,337
----------
PUBLIC FACILITIES -- 4.1%
$ 175,000 Kane Cnty Ill Pub Bldg Comm 6.700% 12/01/03 $107.676 $ 188,433 6.22% 4.54% C
200,000 Louisiana Public Facs Auth 6.100% 05/15/02 108.261 216,522 5.63% 4.59% M
----------
$ 404,955
----------
UTILITIES -- 10.6%
$ 250,000 East Bay CA Mun Util Syst Wtr 5.000% 06/01/05 $102.488 $ 256,220 4.88% 4.67% M
100,000 North Carolina Mun Pwr Agy 5.000% 01/01/04 102.990 102,990 4.85% 4.55% M
250,000 Ohio State Wtr Dev 5.600% 12/01/02 107.090 267,725 5.23% 4.40% M
200,000 Oklahoma St Mun Pwr Auth 5.300% 01/01/01 104.460 208,920 5.07% 4.30% M
150,000 Pasadena Tex Wtr & Swr 5.900% 10/01/00 107.385 161,077 5.49% 4.17% M
50,000 Pecan Grove TX Muni Utl Dist 8.700% 09/01/02 114.679 57,340 7.59% 4.33% C
----------
$ 1,054,272
----------
MISCELLANEOUS -- 12.1%
$ 70,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 $110.802 $ 77,561 6.32% 4.19% F
80,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 110.802 88,642 6.32% 4.19% F
250,000 Broomfield Co Sales & Use Tax 7.050% 12/01/06 110.241 275,603 6.40% 4.19% F
150,000 Dearborn MI Econ Dev Corp 6.350% 08/15/02 111.239 166,859 5.71% 4.39% F
150,000 NJ Wastewtr Treatment Ln Rev Ser A 7.000% 05/15/07 108.710 163,065 6.44% 4.73% C
175,000 Pennsylvania Intergovernment 5.250% 06/15/08 100.672 176,176 5.21% 5.18% C
250,000 Tucson Ariz Str & Hwy User 5.200% 07/01/04 103.827 259,567 5.01% 4.65% M
----------
$ 1,207,473
----------
Total Investments (identified cost, $9,241,816) -- 98.8% $ 9,819,668 5.71% 4.56%
======= =======
Other Assets, Less Liabilities -- 1.2% 115,027
----------
Net Assets -- 100.0% $ 9,934,695
============
Average Maturity -- 8.4 Years(1)
<FN>
(*) -- (C): Price to Call; (F): Prerefunded; (M): Price to Maturity;
(P): Price to Par Call; (X): Called.
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 9,241,816
Unrealized appreciation................ 577,852
------------
Total value (Note 1A)................ $ 9,819,668
Cash..................................... 8,620
Interest receivable...................... 152,100
Receivable from Investment Adviser....... 927
Receivable for Fund shares sold.......... 216
------------
Total Assets........................... $ 9,981,531
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 3,271
Loans payable (Note 8)................... 20,000
Payable to dividend disbursing agent..... 17,170
Trustees' fees payable................... 250
Custodian fee payable.................... 3,000
Interest on loans........................ 169
Accrued expenses and other liabilities... 2,976
------------
Total Liabilities...................... $ 46,836
------------
NET ASSETS.................................. $ 9,934,695
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 9,347,135
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 577,852
Undistributed net investment income......... 9,708
------------
Net assets applicable to outstanding shares $ 9,934,695
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 845,234
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $11.75
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 587,234
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 42,577
Administrator fee (Note 3)............. 10,644
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,548
Distribution expenses (Note 4)......... 21,289
Custodian fee (Note 3)................. 41,713
Audit services......................... 20,783
Interest expense....................... 3,352
Transfer and dividend disbursing agent fees 5,693
Shareholder communication expense...... 1,065
Registration costs..................... 12,911
Printing............................... 2,370
Legal fees............................. 953
Miscellaneous.......................... 2,367
------------
Total expenses....................... $ 167,265
------------
Deduct --
Reduction of Investment Adviser
fee (Note 3)....................... $ 42,577
Reduction of distribution expenses
by Principal Underwriter (Note 4).. 21,289
Reduction of custodian fee (Note 3).. 6,645
Allocation of expenses to Investment
Adviser (Note 3)................... 927
------------
Total deducted..................... $ 71,438
------------
Net expenses......................... $ 95,827
------------
Net investment income.............. $ 491,407
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,397
Change in unrealized appreciation
of investments......................... 686,692
------------
Net realized and unrealized gain
on investments..................... $ 688,089
------------
Net increase in net assets
from operations.................... $ 1,179,496
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
===============================================================================
Year Ended
December 31,
-------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 491,407 $ 697,607
Net realized gain on investment
transactions...................................................... 1,397 103,903
Change in unrealized appreciation
of investments.................................................... 686,692 (1,505,273)
------------ ------------
Increase (decrease) in net assets from operations................. $ 1,179,496 $ (703,763)
------------ ------------
Distributions to shareholders --
From net investment income............................................. $ (491,406) $ (697,473)
From net realized gains on investment transactions..................... -- (103,201)
------------ ------------
Total distributions............................................... $ (491,406) $ (800,674)
------------ ------------
Net decrease from Fund share transactions (Note 5)......................... $ (1,400,272) $ (6,053,899)
------------ ------------
Net decrease in net assets........................................ $ (712,182) $ (7,558,336)
NET ASSETS:
At beginning of year....................................................... 10,646,877 18,205,213
------------ ------------
At end of year............................................................. $ 9,934,695 $ 10,646,877
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 9,708 $ 7,513
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
==================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.020 $ 12.170 $ 11.600 $ 11.330 $ 10.840
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.531 $ 0.560 $ 0.556 $ 0.601 $ 0.614
Net realized and unrealized gain (loss) on
investments............................ 0.729 (1.050) 0.570 0.270 0.492
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.260 $ (0.490) $ 1.126 $ 0.871 $ 1.106
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.530) $ (0.560) $ (0.556) $ (0.601) $ (0.616)
From net realized gains.................. -- (0.100) -- -- --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.530) $ (0.660) $ (0.556) $ (0.601) $ (0.616)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 11.750 $ 11.020 $ 12.170 $ 11.600 $ 11.330
========= ========= ========= ========= =========
Total Return(3)............................. 11.64% (4.08%) 9.89% 7.91% 10.50%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 9,935 $10,647 $ 18,205 $ 13,454 $ 8,396
Ratio of net expenses to average net assets 1.0%(2) 0.9% 0.9% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 4.6% 4.8% 4.7% 5.3% 5.6%
Portfolio Turnover Rate.................. 8% 4% 7% 10% 2%
<FN>
(1)During each of the years in the five-year period ended December 31, 1995, the
operating expenses of the Fund were reduced either by a reduction of the
Investment Adviser fee, Administrator fee, or distribution fee or through the
allocation of expenses to the Investment Adviser, or a combination thereof.
Had such actions not been undertaken, the net investment income per share and
the ratios would have been as follows:
Year Ended December 31,
--------------------------------------------------------------
1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.462 $0.513 $0.521 $0.556 $0.537
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.6% 1.3% 1.1% 1.3% 1.6%
========= ========= ========= ========= =========
Net investment income.................... 4.0% 4.4% 4.4% 4.9% 4.9%
========= ========= ========= ========= =========
(2)During the year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances that the Trust maintained with the
custodian (Note 3). The computation of net expenses to average net assets
reported above is computed without consideration of such credits, in
accordance with reporting regulations in effect beginning in 1995. If these
credits were considered, the ratio of net expenses to average net assets
would have been reduced to 0.9%.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND (WCIF)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==================================================================================================================================
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GOVERNMENT INTERESTS - 97.8%
- ----------------------------
$ 1,596,305 GNMA POOL # 000169 7.500% 09/20/22 $102.312 $1,633,212 7.33%
783,575 GNMA POOL # 000394 7.500% 10/20/22 102.312 801,766 7.33%
6,162 GNMA POOL # 000434 8.000% 04/15/01 104.029 6,410 7.69%
866,076 GNMA POOL # 000446 7.500% 11/20/22 102.312 886,100 7.33%
1,655 GNMA POOL # 000473 7.500% 04/15/01 102.974 1,704 7.28%
1,536,632 GNMA POOL # 000545 7.500% 12/20/22 102.312 1,572,159 7.33%
2,440,936 GNMA POOL # 000723 7.500% 01/20/23 102.312 2,497,370 7.33%
2,441,634 GNMA POOL # 001268 8.000% 07/20/23 103.562 2,528,605 7.72%
3,902 GNMA POOL # 001408 6.500% 03/15/02 101.767 3,971 6.39%
176,941 GNMA POOL # 001596 9.000% 04/20/21 105.187 186,119 8.56%
4,638 GNMA POOL # 003026 8.000% 01/15/04 104.784 4,860 7.63%
2,019 GNMA POOL # 003331 8.000% 01/15/04 104.784 2,116 7.63%
5,273 GNMA POOL # 004183 8.000% 07/15/04 105.038 5,539 7.62%
3,107 GNMA POOL # 004433 9.000% 11/15/04 106.051 3,295 8.49%
8,478 GNMA POOL # 005466 8.500% 03/15/05 105.200 8,919 8.08%
1,137 GNMA POOL # 005561 8.500% 04/15/05 104.906 1,193 8.10%
4,022 GNMA POOL # 005687 7.250% 02/15/05 104.562 4,205 6.93%
5,360 GNMA POOL # 005910 7.250% 02/15/05 104.562 5,605 6.93%
21,598 GNMA POOL # 007003 8.000% 07/15/05 105.225 22,726 7.60%
3,324 GNMA POOL # 007319 6.500% 10/15/04 101.925 3,388 6.38%
8,196 GNMA POOL # 009106 8.250% 05/15/06 105.604 8,655 7.81%
10,361 GNMA POOL # 009889 7.250% 02/15/06 104.562 10,834 6.93%
3,151 GNMA POOL # 011191 7.250% 04/15/06 104.562 3,295 6.93%
7,072 GNMA POOL # 012526 8.000% 11/15/06 105.354 7,451 7.59%
117,175 GNMA POOL # 151443 10.000% 03/15/16 110.488 129,464 9.05%
258,248 GNMA POOL # 151882 8.500% 09/15/19 105.775 273,162 8.04%
51,428 GNMA POOL # 153564 10.000% 04/15/16 110.523 56,840 9.05%
192,738 GNMA POOL # 172558 9.500% 08/15/16 108.218 208,577 8.78%
201,243 GNMA POOL # 176992 8.000% 11/15/16 105.234 211,776 7.60%
64,194 GNMA POOL # 177784 8.000% 10/15/16 105.108 67,473 7.61%
92,708 GNMA POOL # 180033 9.500% 09/15/16 108.218 100,327 8.78%
25,336 GNMA POOL # 188060 9.500% 10/15/16 108.135 27,397 8.79%
8,536 GNMA POOL # 190959 8.500% 02/15/17 105.983 9,047 8.02%
206,151 GNMA POOL # 192357 8.000% 04/15/17 105.108 216,681 7.61%
<PAGE>
$ 621,359 GNMA POOL # 194057 8.500% 04/15/17 $105.924 $ 658,168 8.02%
125,550 GNMA POOL # 194287 9.500% 03/15/17 108.302 135,973 8.77%
979,931 GNMA POOL # 194926 8.500% 02/15/17 105.983 1,038,560 8.02%
19,719 GNMA POOL # 196063 8.500% 03/15/17 105.983 20,899 8.02%
213,072 GNMA POOL # 199537 8.000% 03/15/17 105.108 223,956 7.61%
386,029 GNMA POOL # 203369 8.000% 12/15/16 105.108 405,747 7.61%
16,165 GNMA POOL # 206740 10.000% 10/15/17 110.593 17,877 9.04%
157,667 GNMA POOL # 206762 9.000% 04/15/21 106.375 167,718 8.46%
110,262 GNMA POOL # 207019 8.000% 03/15/17 105.108 115,894 7.61%
35,096 GNMA POOL # 208076 8.000% 04/15/17 105.344 36,972 7.59%
64,502 GNMA POOL # 210520 10.500% 08/15/17 111.864 72,155 9.39%
39,360 GNMA POOL # 210618 9.500% 04/15/17 108.385 42,660 8.77%
205,892 GNMA POOL # 211013 9.000% 01/15/20 106.531 219,339 8.45%
212,710 GNMA POOL # 211231 8.500% 05/15/17 105.983 225,436 8.02%
362,573 GNMA POOL # 211279 8.000% 04/15/17 105.108 381,093 7.61%
122,918 GNMA POOL # 212601 8.500% 06/15/17 105.983 130,272 8.02%
51,602 GNMA POOL # 218420 8.500% 11/15/21 105.000 54,182 8.10%
295,630 GNMA POOL # 219335 8.000% 05/15/17 105.108 310,731 7.61%
291,472 GNMA POOL # 220703 8.000% 05/15/17 105.108 306,360 7.61%
30,996 GNMA POOL # 220917 8.500% 04/15/17 105.983 32,850 8.02%
719,738 GNMA POOL # 222112 8.000% 01/15/22 104.264 750,428 7.67%
59,699 GNMA POOL # 223126 10.000% 08/15/17 110.593 66,023 9.04%
144,980 GNMA POOL # 223133 9.500% 07/15/17 108.052 156,654 8.79%
49,911 GNMA POOL # 223348 10.000% 08/15/18 110.593 55,198 9.04%
36,730 GNMA POOL # 223588 10.000% 12/15/18 110.593 40,621 9.04%
30,570 GNMA POOL # 224078 10.000% 07/15/18 110.593 33,808 9.04%
126,091 GNMA POOL # 228308 10.000% 01/15/19 110.628 139,492 9.04%
91,232 GNMA POOL # 228483 9.500% 09/15/19 107.885 98,426 8.81%
72,824 GNMA POOL # 230223 9.500% 04/15/18 108.135 78,748 8.79%
93,958 GNMA POOL # 235000 10.000% 01/15/18 110.593 103,911 9.04%
70,085 GNMA POOL # 245580 9.500% 07/15/18 107.968 75,669 8.80%
67,561 GNMA POOL # 247473 10.000% 09/15/18 110.593 74,718 9.04%
177,088 GNMA POOL # 247681 9.000% 11/15/19 106.609 188,792 8.44%
56,106 GNMA POOL # 247872 10.000% 09/15/18 110.628 62,069 9.04%
35,430 GNMA POOL # 250412 8.000% 03/15/18 104.967 37,190 7.62%
95,974 GNMA POOL # 251241 9.500% 06/15/18 108.052 103,702 8.79%
<PAGE>
$ 120,864 GNMA POOL # 258911 9.500% 09/15/18 $107.968 $ 130,494 8.80%
75,028 GNMA POOL # 260999 9.500% 09/15/18 107.968 81,006 8.80%
102,354 GNMA POOL # 263439 10.000% 02/15/19 110.628 113,232 9.04%
134,054 GNMA POOL # 265267 9.500% 08/15/20 107.885 144,624 8.81%
60,278 GNMA POOL # 266983 10.000% 02/15/19 110.628 66,684 9.04%
37,694 GNMA POOL # 273690 9.500% 08/15/19 107.885 40,666 8.81%
101,274 GNMA POOL # 274489 9.500% 12/15/19 107.885 109,259 8.81%
38,414 GNMA POOL # 275456 9.500% 08/15/19 107.885 41,443 8.81%
125,456 GNMA POOL # 275538 9.500% 01/15/20 107.968 135,452 8.80%
75,626 GNMA POOL # 277205 9.000% 12/15/19 106.531 80,565 8.45%
88,843 GNMA POOL # 285467 9.500% 07/15/20 107.885 95,848 8.81%
126,835 GNMA POOL # 285744 9.000% 05/15/20 106.609 135,218 8.44%
146,243 GNMA POOL # 286556 9.000% 03/15/20 106.531 155,794 8.45%
4,444 GNMA POOL # 287999 9.000% 09/15/20 106.453 4,731 8.45%
299,797 GNMA POOL # 289092 9.000% 04/15/20 106.531 319,377 8.45%
19,338 GNMA POOL # 289949 8.500% 07/15/21 105.000 20,305 8.10%
33,102 GNMA POOL # 290700 9.000% 08/15/20 106.453 35,238 8.45%
74,881 GNMA POOL # 291933 9.500% 07/15/20 107.802 80,723 8.81%
43,444 GNMA POOL # 293666 8.500% 06/15/21 105.775 45,953 8.04%
4,876 GNMA POOL # 294209 9.000% 07/15/21 106.375 5,187 8.46%
91,090 GNMA POOL # 294577 9.500% 11/15/20 107.802 98,197 8.81%
13,406 GNMA POOL # 297345 8.500% 08/15/20 105.687 14,168 8.04%
41,364 GNMA POOL # 301017 8.500% 06/15/21 105.000 43,432 8.10%
151,767 GNMA POOL # 301366 8.500% 06/15/21 105.687 160,398 8.04%
165,153 GNMA POOL # 302713 9.000% 02/15/21 106.375 175,682 8.46%
18,670 GNMA POOL # 302723 8.500% 05/15/21 105.687 19,732 8.04%
147,135 GNMA POOL # 302781 8.500% 06/15/21 105.687 155,503 8.04%
168,682 GNMA POOL # 302933 8.500% 06/15/21 105.687 178,275 8.04%
145,599 GNMA POOL # 304512 8.500% 05/15/21 105.775 154,007 8.04%
332,997 GNMA POOL # 305091 9.000% 07/15/21 106.375 354,226 8.46%
22,526 GNMA POOL # 306669 8.000% 07/15/21 104.336 23,503 7.67%
233,641 GNMA POOL # 306693 8.500% 09/15/21 105.000 245,323 8.10%
135,563 GNMA POOL # 307553 8.500% 06/15/21 105.000 142,341 8.10%
219,039 GNMA POOL # 308792 9.000% 07/15/21 106.375 233,003 8.46%
130,383 GNMA POOL # 311087 8.500% 07/15/21 105.000 136,902 8.10%
24,014 GNMA POOL # 314222 8.500% 04/15/22 105.000 25,215 8.10%
<PAGE>
$ 292,885 GNMA POOL # 314581 9.500% 10/15/21 $107.718 $ 315,490 8.82%
509,011 GNMA POOL # 314912 8.500% 05/15/22 105.000 534,462 8.10%
563,600 GNMA POOL # 315187 8.000% 06/15/22 104.264 587,632 7.67%
594,314 GNMA POOL # 315388 8.000% 02/15/22 104.336 620,083 7.67%
576,048 GNMA POOL # 315754 8.000% 01/15/22 104.264 600,611 7.67%
1,206,915 GNMA POOL # 316240 8.000% 01/15/22 104.264 1,258,378 7.67%
458,456 GNMA POOL # 316615 8.500% 11/15/21 105.000 481,379 8.10%
301,201 GNMA POOL # 317069 8.500% 12/15/21 105.000 316,261 8.10%
566,321 GNMA POOL # 317351 8.000% 05/15/22 104.188 590,039 7.68%
576,003 GNMA POOL # 317358 8.000% 05/15/22 104.264 600,564 7.67%
473,678 GNMA POOL # 318776 8.000% 02/15/22 104.264 493,876 7.67%
14,782 GNMA POOL # 318793 8.500% 02/15/22 105.775 15,636 8.04%
483,979 GNMA POOL # 319441 8.500% 04/15/22 105.000 508,178 8.10%
348,532 GNMA POOL # 321806 8.000% 05/15/22 104.264 363,393 7.67%
735,097 GNMA POOL # 321807 8.000% 05/15/22 104.188 765,883 7.68%
468,099 GNMA POOL # 321976 8.500% 01/15/22 105.000 491,504 8.10%
825,055 GNMA POOL # 323226 8.000% 06/15/22 104.188 859,608 7.68%
682,237 GNMA POOL # 323929 8.000% 02/15/22 104.264 711,328 7.67%
596,656 GNMA POOL # 325165 8.000% 06/15/22 104.188 621,644 7.68%
479,463 GNMA POOL # 325651 8.000% 06/15/22 104.264 499,907 7.67%
949,006 GNMA POOL # 329540 7.500% 08/15/22 103.014 977,609 7.28%
1,369,246 GNMA POOL # 329982 7.500% 02/15/23 102.875 1,408,612 7.29%
713,139 GNMA POOL # 331361 8.000% 11/15/22 104.188 743,005 7.68%
1,419,856 GNMA POOL # 335746 8.000% 10/15/22 104.188 1,479,320 7.68%
546,946 GNMA POOL # 335950 8.000% 10/15/22 104.188 569,852 7.68%
2,655,992 GNMA POOL # 348103 7.000% 06/15/23 101.356 2,692,007 6.91%
888,503 GNMA POOL # 348213 6.500% 08/15/23 99.187 881,279 6.55%
1,454,188 GNMA POOL # 350372 7.000% 04/15/23 101.356 1,473,907 6.91%
1,573,407 GNMA POOL # 350659 7.500% 06/15/23 102.875 1,618,642 7.29%
1,876,639 GNMA POOL # 350938 6.500% 08/15/23 99.187 1,861,382 6.55%
916,319 GNMA POOL # 362125 7.000% 10/15/23 101.356 928,744 6.91%
951,399 GNMA POOL # 362174 6.500% 01/15/24 99.290 944,644 6.55%
949,216 GNMA POOL # 362628 7.000% 08/15/23 101.187 960,483 6.92%
993,263 GNMA POOL # 363429 7.000% 08/15/23 101.187 1,005,053 6.92%
927,593 GNMA POOL # 367414 6.000% 11/15/23 97.250 902,084 6.17%
2,861,912 GNMA POOL # 367806 6.500% 09/15/23 99.187 2,838,645 6.55%
<PAGE>
$ 2,589,097 GNMA POOL # 368238 7.000% 12/15/23 $101.187 $ 2,619,830 6.92%
2,768,838 GNMA POOL # 368502 7.000% 02/15/24 101.187 2,801,704 6.92%
1,984,354 GNMA POOL # 370773 6.000% 11/15/23 97.250 1,929,784 6.17%
2,872,511 GNMA POOL # 372050 6.500% 02/15/24 99.187 2,849,157 6.55%
----------
Total Government Investments (identified cost, $63,949,907) -- 97.8% $64,895,837
RESERVE FUNDS - 1.8%
1,155,000 American Express Corp 5.654% 01/02/96 100.000 1,155,000 5.65%
----------- ------
Total Investments (identified cost $65,104,907) -- 99.6% $66,050,837 7.98%
=======
Other Assets, less Liabilities -- 0.4% 294,336
-----------
Net Assets -- 100.0% $66,345,173
============
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 65,104,907
Unrealized appreciation................ 945,930
------------
Total value (Note 1A)................ $ 66,050,837
Cash .................................... 2,559
Receivable for Fund shares sold.......... 95,179
Interest receivable...................... 398,712
Receivable for investments sold.......... 1,206
------------
Total Assets........................... $ 66,548,493
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 103,812
Payable for Fund shares reacquired....... 90,648
Trustees' fees payable................... 250
Custodian fee payable.................... 4,400
Accrued expenses and other liabilities... 4,210
------------
Total Liabilities...................... $ 203,320
------------
NET ASSETS.................................. $ 66,345,173
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 66,279,731
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (914,103)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 945,930
Undistributed net investment income......... 33,615
------------
Net assets applicable to outstanding shares $ 66,345,173
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 6,218,728
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.67
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 5,976,371
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 313,626
Administrator fee (Note 3)............. 78,407
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,529
Distribution expenses (Note 4)......... 155,373
Custodian fee (Note 3)................. 60,585
Audit services......................... 23,683
Transfer and dividend disbursing agent fees 9,695
Shareholder communication expense...... 6,494
Registration costs..................... 12,848
Interest expense....................... 5,374
Printing............................... 1,450
Legal services......................... 1,187
Miscellaneous.......................... 7,557
------------
Total expenses....................... $ 677,808
Deduct --
Reduction of custodian fee........... 4,516
------------
Net expenses......................... $ 673,292
------------
Net investment income.............. $ 5,303,079
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (215,933)
Change in unrealized appreciation
of investments......................... 7,735,307
------------
Net realized and unrealized gain
on investments..................... $ 7,519,374
------------
Net increase in net assets
from operations.................... $ 12,822,453
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
===================================================================================================================================
Year Ended
December 31,
-----------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 5,303,079 $ 6,817,890
Net realized loss on investment
transactions......................................................... (215,933) (682,417)
Change in unrealized appreciation
of investments....................................................... 7,735,307 (10,057,612)
------------ ------------
Increase (decrease) in net assets from operations................. $ 12,822,453 $ (3,922,139)
------------ ------------
Distributions to shareholders --
From net investment income............................................. $ (5,270,012) $ (6,817,890)
In excess of net investment income..................................... -- (1,238)
------------ ------------
Total distributions............................................... $ (5,270,012) $ (6,819,128)
------------ ------------
Net decrease from Fund share transactions (Note 5)......................... $ (25,384,872) $ (20,238,740)
------------ ------------
Net decrease in net assets........................................ $ (17,832,431) $ (30,980,007)
NET ASSETS:
At beginning of year....................................................... 84,177,604 115,157,611
------------ ------------
At end of year............................................................. $ 66,345,173 $ 84,177,604
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET ASSETS.................................... $ 33,615 $ (1,238)
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
==================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.710 $ 10.750 $ 10.780 $ 10.850 $ 10.160
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.696 $ 0.690(*) $ 0.728 $ 0.767 $ 0.798
Net realized and unrealized gain (loss) on
investments............................ 0.955 (1.040) (0.030) (0.069) 0.690
-------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 1.651 $ (0.350) $ 0.698 $ 0.698 $ 1.488
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.691) $ (0.690) $ (0.728) $ (0.767) $ (0.798)
From net realized gain................... -- -- -- (0.001) --
-------- -------- -------- -------- --------
Total distributions.................. $ (0.691) $ (0.690) $ (0.728) $ (0.768) $ (0.798)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850
========= ========= ========= ========= =========
Total Return(2)............................. 17.46% (3.30%) 6.59% 6.73% 15.31%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 66,345 $84,178 $ 115,158 $ 99,676 $ 65,700
Ratio of net expenses to average net assets 0.9% 0.8% 0.8% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 6.8% 6.9% 6.7% 7.2% 7.6%
Portfolio Turnover Rate.................. 26% 10% 4% 13% 5%
<FN>
(1)During the year ended December 31, 1991, the operating expenses of the Fund
were reduced by a reduction of the distribution fee. Had such actions not
been undertaken, the net investment income per share and the ratios would
have been as follows:
1991
Net investment income per share............. $ 0.787
=========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.0%
=========
Net investment income.................... 7.5%
=========
(*) Includes distribution in excess of net investment income of $.00013 per share.
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust, issuer of Wright U.S. Treasury Fund (WUSTB) series, formerly the
Wright Government Obligations Fund series; Wright U.S. Treasury Near Term Fund
(WNTB) series, formerly the Wright Near Term Bond Fund series; Wright Total
Return Bond Fund (WTRB) series, Wright Insured Tax-Free Bond Fund (WTFB) series,
and Wright Current Income Fund (WCIF) series, is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations -- Investments of the various funds for which market
quotations are readily available are valued at current market value as
furnished by a pricing service. Investments for which valuations are not
readily available will be appraised at their fair value as determined in
good faith by or at the direction of the Trustees. Short-term obligations
maturing in sixty days or less are valued at amortized cost, which
approximates value.
B. Income -- Interest income is determined on the basis of interest accrued
and discount earned, adjusted for amortization of premium or discount on
long-term debt securities when required for federal income tax purposes.
C. Federal Taxes -- The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At December 31,
1995, the Trust, for federal income tax purposes, had capital loss
carryovers of $434,300 (WUSTB), $21,682,260 (WNTB), $914,103 (WCIF)
and $1,472,119 (WTRB) which will reduce taxable income arising from
future net realized gain on investments, if any, to the extent permitte
by the Code, and thus will reduce the amount of the distribution to
shareholders which would otherwise be necessary to relieve the respective
Fund of any liability for federal income or excise tax. Pursuant to the
Code, such capital loss carryovers will expire as follows:
<TABLE>
12/31 WUSTB WNTB WCIF WTRB
--------------------------------------------------
<S> <C> <C> <C> <C>
1996 $ -- $2,300,814 $ -- $ --
1997 -- 1,319,208 -- --
1998 434,300 3,324,484 -- --
1999 -- 4,467,443 -- --
2000 -- 2,957,673 7,132 --
2001 -- -- 8,619 --
2002 -- 6,936,070 682,417 1,472,119
2003 -- 376,568 215,933 --
</TABLE>
Distributions paid by WTFB from net investment income on tax-exempt
municipal securities are not included by shareholders as gross income for
federal income tax purposes because WTFB intends to meet certain
requirements of the Code applicable to regulated investment companies which
will enable WTFB to pay exempt distributions. The portion of interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item to shareholders.
D. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
E. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
<PAGE>
(2) DISTRIBUTIONS
Each Fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is declared as a
dividend to shareholders of record at the time of such determination.
Distributions of realized capital gains are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the same Fund at
the net asset value as of the ex-dividend date. Dividends may be reinvested in
additional shares of the same Fund at the net asset value as of the payable
date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes, are
classified as distributions in excess of net investment income or accumulated
net realized gains.
<TABLE>
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN
Gain (Loss) Undistributed
Paid-in on Net Investment
Capital Investment Income (Loss)
- -----------------------------------------------------------
<S> <C> <C> <C>
WUSTB ($6) -- $6
WNTB ($2,038,311) $2,038,311 --
WTRB $825 -- ($825)
WTFB ($96) ($2,098) $2,194
WCIF ($1,784) ($2) $1,786
- ----------------------------------------------------------
</TABLE>
These reclassifications are due to differences between book and tax
accounting. Net investment income, net realized gains (losses) and net assets
were not affected by these reclassifications.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the year ended December 31, 1995, the effective annual rate was 0.40% for
WUSTB, WTFB and WCIF, 0.41% for WTRB and 0.43% for WNTB. To enhance the net
income of the Funds, Wright reduced its investment adviser fee by $42,577 and
$17,515 for the benefit of WTFB and WUSTB, respectively. The Trust also has
engaged Eaton Vance Management (Eaton Vance) to act as administrator of the
Trust. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of the Trust and is compensated based upon a
percentage of average daily net assets which rate is reduced as average daily
net assets exceed certain levels. For the year ended December 31, 1995, the
effective annual rate was 0.10% for WUSTB, WTFB and WCIF, 0.09% for WTRB and
0.07% for WNTB. The custodian fee was paid to Investors Bank & Trust Company
(IBT) for its services as custodian of the Trust. Prior to November 10, 1995,
IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances the Trust maintains with IBT. All significant credits are
reported as a reduction of expenses in the Statement of Operations. Certain of
the Trustees and officers of the Trust are directors/trustees and/or officers of
the above organizations. Except as to Trustees of the Trust who are not
affiliated with Eaton Vance or Wright, Trustees and officers received
remuneration for their services to the Trust out of fees paid to Eaton Vance and
Wright.
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a subsidiary of
<PAGE>
Wright, at an annual rate of 2/10 of 1% of the average daily net assets of
each Fund for activities primarily intended to result in the sale of each
Fund's shares. For the year ended December 31, 1995, the Principal
Underwriter made a reduction of its fee to WUSTB and WTFB by $32,770 and
$21,289, respectively.
(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
Year Ended December 31,
-------------------------------------------------------------
1995 1994
-------------------------------------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WRIGHT U.S. TREASURY FUND --
Sales.................................................... 111,589 $ 1,478,738 162,879 $ 2,104,165
Issued to shareholders in payment
of distributions declared.............................. 41,352 557,152 62,116 805,054
Redemptions.............................................. (482,923) (6,531,999) (943,611) (12,465,253)
---------- ------------- ---------- -------------
Net decrease......................................... (329,982) $ (4,496,109) (718,616) $ (9,556,034)
========== ============== ========== ==============
WRIGHT U.S. TREASURY NEAR TERM FUND --
Sales.................................................... 2,507,050 $ 25,756,963 4,457,277 $ 46,681,687
Issued to shareholders in payment of
distributions declared................................. 657,890 6,744,268 1,093,362 11,252,377
Redemptions..............................................(10,814,467) (110,894,862) (19,306,382) (199,439,187)
---------- ------------- ---------- -------------
Net decrease......................................... (7,649,527) $(78,393,631) (13,755,743) $(141,505,123)
========== ============== ========== ==============
WRIGHT TOTAL RETURN BOND FUND --
Sales.................................................... 1,710,110 $ 21,132,654 3,088,029 $ 38,238,580
Issued to shareholders in payment
of distributions declared.............................. 470,132 5,784,061 800,418 9,609,763
Redemptions.............................................. (5,380,600) (65,580,321) (11,284,858) (138,048,649)
---------- ------------- ---------- -------------
Net decrease......................................... (3,200,358) $(38,663,606) (7,396,411) $(90,200,306)
========== ============== ========== ==============
WRIGHT INSURED TAX-FREE BOND FUND --
Sales.................................................... 277,377 $ 3,172,217 307,219 $ 3,650,011
Issued to shareholders in payment
of distributions declared ............................. 24,036 276,793 52,115 597,038
Redemptions.............................................. (422,274) (4,849,282) (889,361) (10,300,948)
---------- ------------- ---------- -------------
Net decrease......................................... (120,861) $ (1,400,272) (530,027) $ (6,053,899)
========== ============== ========== ==============
WRIGHT CURRENT INCOME FUND --
Sales.................................................... 796,965 $ 8,232,880 1,447,569 $ 14,915,507
Issued to shareholders in payment
of distributions declared.............................. 397,997 4,102,611 530,312 5,337,338
Redemptions.............................................. (3,646,704) (37,720,363) (4,014,808) (40,491,585)
---------- ------------- ---------- -------------
Net decrease......................................... (2,451,742) $(25,384,872) (2,036,927) $(20,238,740)
========= ============ ========= ============
</TABLE>
<PAGE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
<TABLE>
Year Ended December 31, 1995
--------------------------------------------------------------------------------------------
Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current
Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases --
Non-U.S. Gov't Obligations.. $ -- $ -- $ 5,301,420 $ 840,389 $ --
============== ============== ============== ============== ==============
U.S. Gov't Obligations...... $ 1,318,383 $ 35,726,875 $ 57,719,949 $ -- $ --
============== ============== ============== ============== ==============
Sales --
Non-U.S. Gov't Obligations.. $ -- $ -- $ 26,913,665 $ 2,879,942 $ --
============== ============== ============== ============== ==============
U.S. Gov't Obligations...... $ 5,556,281 $ 107,673,626 $ 74,330,957 $ -- $ 20,004,409
============== ============== ============== ============== ==============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
<TABLE>
Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current
Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aggregate cost................... $ 12,564,565 $136,992,741 $113,147,771 $ 9,241,816 $ 65,104,907
============= ============= ============= ============= =============
Gross unrealized appreciation.... $ 2,326,649 $ 4,674,371 $ 8,044,555 $ 581,293 $ 1,401,952
Gross unrealized depreciation.... -- (270,485) (395,036) (3,441) (456,022)
------------ ------------ ------------ ------------ ------------
Net unrealized appreciation. $ 2,326,649 $ 4,403,886 $ 7,649,519 $ 577,852 $ 945,930
============= ============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(8) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less
the value of any borrowing. The Wright Insured Tax-Free Bond Fund had loans
outstanding of $20,000 at December 31, 1995.
<PAGE>
INDEPENDENT AUDITORS' REPORT
===============================================================================
To the Trustees and Shareholders of
The Wright Managed Income Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Wright U.S. Treasury Fund,
Wright U.S. Treasury Near Term Fund, Wright Total Return Bond Fund, Wright
Insured Tax-Free Bond Fund, and Wright Current Income Fund of The Wright
Managed Income Trust as of December 31, 1995, the related statements of
operations for the year then ended, the statements of changes in net assets
for the years ended December 31, 1995 and 1994, and the financial
highlights for each of the years in the five-year period ended December 31,
1995. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of the
securities owned at December 31, 1995, by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective Funds constituting The Wright Managed Income Trust as of
December 31, 1995, the results of their operations, the changes in their
net assets, and their financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
- -------------------------------------------------------------------------------
Description of the art work on the back cover of the report
Three thin vertical red lines on the right side of the page.
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED
INCOME TRUST
ANNUAL
REPORTS
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on the front cover of the report
Three thin vertical green lines on the right side of the page.
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1995
WRIGHT
U.S. TREASURY
MONEY MARKET
FUND
THE WRIGHT MANAGED
INVESTMENT FUNDS
WRIGHT U.S. TREASURY
MONEY MARKET FUND
===============================================================================
WRIGHT U.S. TREASURY MONEY MARKET FUND seeks a high rate of current
income but with added safety that comes from limiting its investments to
securities of the U.S. Government and its agencies. There may be an added
advantage to investors that reside in states and municipalities that do
not tax dividend income from mutual funds investing exclusively in U.S.
Government securities.
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES..................Inside Front Cover
LETTER TO
SHAREHOLDERS................................ 1
WRIGHT U.S. TREASURY MONEY MARKET FUND
Monthly Net Income Per Share................ 2
Portfolio of Investments.................... 3
Financial Statements........................ 4
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
February 1996
Dear Shareholders:
The Wright U.S. Treasury Money Market Fund (WTMM) had a 1.3% total return
for the fourth quarter of 1995, matching the return of the average Treasury
money market fund. For all of 1995, the Fund's return was 5.3%, also in line
with the average money market fund's performance. WTMM, which holds only
short-term U.S. Treasury securities, had an average maurity of 89 days at the
end of the fourth quarter, up from 75 days three months earlier.
Three-month Treasury bill rates declined by 33 basis points in the final quarter
of 1995. Much of the decline came late in the quarter following the Federal
Reserve's 25 basis-point cut in the fed funds rate. With the economy clearly
slowing in the fourth quarter and into early 1996, Wright expects the Fed to
ease further early in 1996, by as much as 75 basis points; lower returns on
short-term securities appear likely.
It should be understood that performance data quoted above represents past
performance which is not predictive of future performance and that the
investment return of a money market fund fluctuates on a daily basis.
Sincerely,
Peter M. Donovan
President
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND -- 1995
==============================================================================
<TABLE>
<CAPTION>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- -------------------------------------------------------------------------------------------------------------------------
$1,000.00
<S> <C> <C> <C> <C> <C>
Jan. 31 $0.004187833 1,004.19 4.93% 4.93%
Feb. 28 0.003954237 1,008.16 5.15% 5.05%
Mar. 31 0.004495298 1,012.69 5.29% 5.15% 5.15%
Apr. 30 0.004486644 1,017.23 5.46% 5.33% 5.24%
May 31 0.004575083 1,021.89 5.39% 5.40% 5.29%
Jun. 30 0.004443119 1,026.43 5.41% 5.44% 5.33%
Jul. 31 0.004539099 1,031.09 5.34% 5.40% 5.35%
Aug. 31 0.004461950 1,035.69 5.25% 5.36% 5.36%
Sep. 30 0.004266125 1,040.11 5.19% 5.29% 5.36%
Oct. 31 0.004355057 1,044.64 5.13% 5.21% 5.36%
Nov. 30 0.004144636 1,048.97 5.04% 5.14% 5.35%
Dec. 31 0.004214358 1,053.39 4.96% 5.07% 5.34%
----------
Total $0.052123439
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
<TABLE>
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 200,000 U. S. Treasury Bills 5.240% 01/25/96 $ 199,301
100,000 U. S. Treasury Bills 5.200% 01/25/96 99,653
600,000 U. S. Treasury Bills 5.210% 01/25/96 597,915
3,500,000 U. S. Treasury Bills 4.700% 02/01/96 3,485,835
1,200,000 U. S. Treasury Bills 5.350% 02/15/96 1,191,975
2,300,000 U. S. Treasury Bills 5.270% 02/22/96 2,282,491
5,250,000 U. S. Treasury Bills 5.310% 02/29/96 5,204,312
950,000 U. S. Treasury Bills 5.280% 03/07/96 940,804
400,000 U. S. Treasury Bills 5.310% 03/07/96 396,106
1,150,000 U. S. Treasury Bills 5.295% 03/07/96 1,138,837
5,500,000 U. S. Treasury Bills 4.760% 03/07/96 5,452,003
2,400,000 U. S. Treasury Bills 5.340% 03/14/96 2,374,012
1,000,000 U. S. Treasury Bills 5.300% 03/14/96 989,253
3,800,000 U. S. Treasury Bills 5.350% 03/28/96 3,750,869
300,000 U. S. Treasury Bills 5.300% 04/04/96 295,848
400,000 U. S. Treasury Bills 5.260% 04/04/96 394,506
900,000 U. S. Treasury Bills 5.270% 04/04/96 887,616
200,000 U. S. Treasury Bills 5.240% 04/04/96 197,264
300,000 U. S. Treasury Bills 5.210% 04/04/96 295,919
1,600,000 U. S. Treasury Bills 5.315% 04/04/96 1,577,795
600,000 U. S. Treasury Bills 5.190% 04/04/96 591,869
3,500,000 U. S. Treasury Bills 5.000% 04/25/96 3,444,097
800,000 U. S. Treasury Bills 5.250% 05/09/96 784,950
600,000 U. S. Treasury Bills 5.270% 05/09/96 588,669
3,300,000 U. S. Treasury Bills 5.240% 05/09/96 3,238,037
1,400,000 U. S. Treasury Bills 5.220% 05/16/96 1,372,392
300,000 U. S. Treasury Bills 5.190% 05/16/96 294,118
400,000 U. S. Treasury Bills 5.120% 05/16/96 392,263
2,000,000 U. S. Treasury Bills 5.180% 05/30/96 1,956,833
200,000 U. S. Treasury Bills 5.210% 05/30/96 195,658
250,000 U. S. Treasury Bills 5.230% 05/30/96 244,552
800,000 U. S. Treasury Bills 5.220% 05/30/96 782,600
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 99.5% $45,638,352
Other Assets, less Liabilities -- 0.5% 250,595
----------
Net Assets -- 100.0% $45,888,947
===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments, at amortized cost and value
(Note 1A).................................... $45,638,352
Cash............................................ 237,761
Receivable for Fund shares sold................. 195,080
Deferred organizational costs (Note 1D)......... 5,440
----------
Total Assets................................. $46,076,633
LIABILITIES:
Payable for Fund shares reacquired.... $121,922
Payable to dividend disbursing agent.. 52,032
Investment Adviser fee payable........ 4,916
Custodian fee payable................. 3,100
Trustees' fees payable................ 250
Accrued expenses and other liabilities 5,466
--------
Total Liabilities.................. 187,686
-----------
NET ASSETS (Consisting of paid-in capital)...... $45,888,947
===========
Net Asset Value, Offering Price, and Redemption
Price Per Share ($45,888,947 / 45,888,947 shares
of beneficial interest outstanding).......... $1.00
===========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest income (Note 1B)........................$ 2,632,668
-----------
Expenses --
Investment Adviser fee (Note 3)....... $162,732
Administrator fee (Note 3)............ 32,543
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator.. 1,563
Custodian fee (Note 3)................ 42,735
Audit and legal....................... 22,068
Registration costs.................... 15,385
Transfer & dividend disbursing agent
fees ................................ 10,284
Shareholder communication expense..... 5,774
Amortization of organization costs(Note 1D)4,630
Printing.............................. 2,611
Miscellaneous......................... 2,526
--------
Total expenses...................... $302,851
--------
Deduct --
Reduction of Investment Adviser
fee (Note 3)......................... $ 87,656
Reduction of Custodian fee (Note 3)... 5,959
--------
Total deductions.................... $ 93,615
--------
Net expenses................................... 209,236
-----------
Net investment income..........................$ 2,423,432
===========
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Year Ended December 31
1995 1994
-----------------------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income.................................................................. $ 2,423,432 $ 1,697,224
------------ ------------
DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,423,432) $ (1,697,224)
------------ ------------
FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE
(Note 4):
Proceeds from sale of shares........................................................... $217,876,175 $204,314,264
Net asset value of shares issued to shareholders in connection with the merger of
Wright Managed Money Market Fund (Note 7)............................................ -- 16,981,815
Net asset value of shares issued to shareholders in payment of dividends declared...... 1,823,063 1,121,380
Cost of shares reacquired.............................................................. (242,687,133) (164,551,690)
------------ ------------
Increase (decrease) in net assets from Fund share transactions....................... $(22,987,895) $ 57,865,769
------------ ------------
Net increase (decrease) in net assets.............................................. $(22,987,895) $ 57,865,769
NET ASSETS:
Beginning of year...................................................................... 68,876,842 11,011,073
------------ ------------
End of year............................................................................ $ 45,888,947 $ 68,876,842
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of period......... $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1) .................. 0.05212 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income.................. (0.05212) (0.03494) (0.02503) (0.03221) (0.02526)
-------- -------- -------- -------- --------
Net asset value -- end of period............... $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return(4)................................ 5.34% 3.55% 2.53% 3.27% 5.06%(3)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)....... $45,889 $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average daily
net assets................................ 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3)
Ratio of net investment income to average daily
net assets................................ 5.22% 3.77% 2.52% 3.19% 4.95%(3)
<FN>
(1)During each of the above periods, the Investment Adviser reduced its fee and
in certain periods was allocated a portion of the operating expenses. Had
such actions not been undertaken, net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
-------------------------------------------------------------
1995 1994 1993 1992 1991(2)
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159
========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.65% 0.71% 0.97% 0.72% 0.97%(3)
========= ========= ========= ========= =========
Net investment income ...................... 5.03% 3.51% 1.99% 2.93% 4.23%(3)
========= ========= ========= ========= =========
(2) For the period from the start of business, June 28, 1991, to December 31, 1991.
(3) Annualized.
(4)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the payable date.
(5)Custodian fees were reduced by credits resulting from cash balances the Fund
maintained with the Custodian (Note 3). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net asets would have been reduced to 0.45%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
Wright U.S. Treasury Money Market Fund (the Fund) is a series of The Wright
Managed Income Trust (the Trust) and is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end, management investment
company. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Valuation of Investments -- Money market instruments are valued at
amortized cost, which the Trustees have determined in good faith
constitutes fair value. The Fund's use of amortized cost is
subject to the Fund's compliance with certain conditions as
specified under Rule 2a-7 of the Investment Company Act of 1940.
B. Interest Income -- Interest income consists of interest accrued
and discount earned (including both original issue and market
discount) on the investments of the Fund, accrued ratably to the
date of maturity plus or minus net realized gain or loss, if any,
on investments.
C. Federal Taxes -- The Fund's policy is to comply with the
provisions of the Internal Revenue Code available to regulated
investment companies and distribute to shareholders each year all
of its taxable income. Accordingly, no provision for federal
income or excise tax is necessary.
D. Deferred Organization Costs -- Costs incurred by the Fund in
connection with its organization are being amortized on a
straight-line basis through June 1996.
E. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
(2) DIVIDENDS
The net investment income of the Fund is determined daily, and all of the
net investment income so determined is declared as a dividend to shareholders of
record at the time of such determination. Dividends are distributed monthly in
the form of additional shares of the Fund or, at the election of the
shareholder, in cash, on the payable date.
(3) INVESTMENT ADVISER AND ADMINISTRATOR FEES AND OTHER TRANSACTIONS
WITH AFFILIATES
The Fund has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based on a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
<PAGE>
For the year ended December 31, 1995, the effective annual rate was 0.35%. To
enhance the net income of the Fund, Wright reduced its investment adviser fee by
$87,656. The Fund has also engaged Eaton Vance Management (Eaton Vance) to act
as administrator of the Fund. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Fund and is compensated
based on a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1995, the effective annual rate was 0.07%. The custodian fee was paid to
Investors Bank & Trust Company (IBT) for its services as custodian to the Fund.
Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the
custodian agreement, IBT receives a fee reduced by credits which are determined
based on the average daily cash balances the Fund maintains with IBT. All
significant credits are reported as a reduction of expenses in the Statement of
Operations.
Certain of the Trustees and officers of the Trust are directors/trustees and/or
officers of the above organizations. Except as to Trustees who are not
affiliated with Wright or Eaton Vance, Trustees and officers receive
remuneration for their services to the Fund out of the fees paid to Wright or
Eaton Vance.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
(5) INVESTMENTS
Purchases and sales and maturities of investments aggregated $297,818,179
and $319,229,911, respectively.
(6) LINE OF CREDIT
The Fund participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of
$10,000,000 less the value of any borrowing. The Trust did not have any
borrowings under the line of credit during the year ended December 31, 1995.
(7) ACQUISITION OF WRIGHT MANAGED MONEY MARKET FUND
On March 30, 1994, the Fund acquired the net assets of Wright Managed Money
Market Fund pursuant to a plan of reorganization dated March 28,1994 and
approved by the shareholders of both funds. The acquisition was accomplished by
a tax-free exchange of 16,981,815 shares of Wright Managed Money Market Fund for
the same number of shares of Wright U.S. Treasury Money Market Fund. The
aggregate net assets of the Fund immediately after the acquisition was
$40,883,041.
<PAGE>
INDEPENDENT AUDITORS' REPORT
===============================================================================
To the Trustees and Shareholders of
The Wright Managed Income Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wright U.S. Treasury Money Market Fund (one of
the series constituting The Wright Managed Income Trust) as of December 31,
1995, and the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended December 31, 1995 and
1994, and the financial highlights for each of the years in the five-year period
ended December 31, 1995. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Wright U.S. Treasury
Money Market Fund series of The Wright Managed Income Trust as of December 31,
1995, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE, LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
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Description of art work on the back cover of the report
Three thin vertical green lines on the right side of the page.
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THE WRIGHT
U.S. TREASURY
MONEY MARKET FUND
ANNUAL
REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President, Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
